A lot has changed over the week, and information is coming out at a staggering pace. Here is a collection of some of the best resources and most applicable information related to the hospitality industry.
The information in this post is subject to change, as there is new information every hour.
Mass to give businesses respite on sales, meals and lodging taxes
Eligible businesses would not have to remit sales, meals or room occupancy taxes for the months of March, April and May until June 20, under new rules under development at the Department of Revenue, Gov. Charlie Baker said in a press conference Wednesday. The administration expects the regulations to be finalized before Friday, when the first round of taxes are due.
To qualify for the tax relief, a business must have paid less than $150,000 in 2019 sales and meals or room occupancy taxes. This will not apply to businesses that generate more than $2m in taxable revenue
Who Qualifies for Paid Leave Under the New Coronavirus Law?
Workers at places with fewer than 50 employees — 27 percent of workers — are included, but the Labor Department could exempt small businesses if providing leave would put them out of business. This leave is paid by the employer. Businesses will be reimbursed for the full amount within three months, in the form of a payroll tax credit. The reimbursement will also cover the employer’s contribution to health insurance premiums during the leave. If the employer cannot afford to pay the leave, then apparently an advance is possible, but it has not been determined how that is decided.
Resources for your employees
The New York Times put together a great list of resources and explanations for personal expenses and navigating these dark times. This guide will connect employees to the basic information they’ll need to get through this, including on government benefits, free services and financial strategies.
Is Delivery and Takeout Safe?
Amid the COVID-19 pandemic, cities and states are increasingly limiting restaurants to takeout and delivery only. Here’s how you can best avoid health risks and support your favorite local eateries.
Cash Flow, Financing & Short Term Relief
Right now, cash flow is an issue for all businesses. As state and federal governments roll out more programs we'll keep you updated, but for now, here are the options currently available.
Commercial Line of Credit: A good option for businesses that have not already been experiencing cash flow issues. The federal reserve just lowered the interest rate to 0%, so now is actually a great time to get a line of credit, especially if you can get an allusive fixed rate LOC. Alternatively, you can just get a term loan which will likely be fixed, but you won’t be able to draw more funds from the loan, or increase the balance. Looking for a loan? Try Maureen Baran at Adams Community Bank: mbaran@adamscommunity.com
Small Business Administration: The SBA is now offering low-interest federal loans to small businesses in designated states and territories impacted by COVID-19. The loan offers up to $2 million in assistance, with interest rates of 3.75% and repayment terms up to 30 years. You do need to be in a designated disaster area to apply, but if you are you'll be claiming Economic Injury (EIDL) Here is some more information.
Massachusetts Small Business Recovery Loan Fund: will provide emergency capital up to $75,000 to Massachusetts-based businesses impacted by COVID-19 with under 50 full- and part-time employees, including nonprofits. Loans are immediately available to eligible businesses with no payments due for the first 6 months. Massachusetts Growth Capital Corporation (MGCC) has capitalized the fund and will administer it.
Update: This money is no longer available!
Watch our Webinar:
The world has changed overnight. Now what? Chris Macksey of Prix Fixe Accounting, Matt Jennings and Jason Rose of Full Heart Hospitality, and Meghan Blair-Valero of Fogged In Bookkeeping are bringing the clutch wisdom on cashflow, laying off employees, insurance, relief funds, things to consider if you are thinking about delivery, and extending that runway long enough to reopen. We will share free tools, advice, and resources. This webinar is intended for restaurant teams looking for resources and information that will help them navigate the impacts of coronavirus on their business and team. In a time of great social responsibility, choices are hard. Being armed with data and information is our best hope of making smart decisions.
ABCC Extends Posting to 90 Days
You are reading it correctly, the evil empire known as the Alcoholic Beverages Control Commission has even pitched in a bit of relief by extending payment of invoices to 90 days.
