The noise TRA has been making on the PPP loan and needed changes is working. Senator Schumer is introducing a bill that will have many of the fixes they want. The pressure is on and they know we need fixes and they know it is the restaurant industry that is making the most noise. Key things that are within the proposed plan include:
Moving from 2 years to 5 for repayment
Changing the 75/25 split so you can make it work for you
Extend the forgiveness period until the end of 2020
Change the covered period from eight weeks to 12 or 24 weeks
On a call, they specifically asked about any fixes being made retroactive, and it was confirmed they would indeed apply. Note, on Tuesday they moved the Safe Harbor (the period of time when you could simply return your loan and not use) from May 7 to May 14. They believe this is so Treasury can release guidance on forgiveness early next week. In summary, it would be great if the Treasury could give us several of these fixes, but if they will not, in Phase 4 aka CARES 2.0 we believe the key items we need will be addressed. We also believe tax credits and state allocation of funding will be a big piece of the bill.
Today TRA signed on with the AHLI regarding liability. They know we need liability protection with the current environment and believe signing on to this and making it part of CARES 2.0 will be important.
They also made great progress this week on pulling together our “Blueprint for Recovery” and this plan includes the creation of a Restaurant Recovery Fund that will be driven from the state level. Kelsey and I are putting the finishing touches on this over the weekend with the goal to bring to the governor and our legislators next week. We feel strongly that we need state support in the recovery and cannot bear all the costs of getting our restaurants back on track. Remember, we were closed due to government mandate and have done everything to support public health. With this proposed fund, we feel we can ask for a fair financial recovery plan supported by the State of Texas and dollars secured from the CARES Act. Our Blueprint for Recovery plan also includes consideration on taxes, expansion of the current alcohol waiver, and relief from any pending regulatory changes. We need to create the best possible environment for our restaurants to succeed.
They had an opportunity to meet with several bar owners and operators are helping to craft a plan to get them open as soon as possible. They hope to have the framework of a plan that we can complete by early next week. This will be submitted to the governor’s office, like they did with the Texas Restaurant Promise, with the goal to provide a comprehensive plan to safely reopen bars. While it will be the Governor’s team and his medical experts that have the final say, we know giving them a plan helps a lot. We have more than 5,000 bars in Texas and they need our help getting customers safely back in the door. We are stronger together.
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