PRLA Restaurant & Lodging Matters Summer 2020

Summer 2020  •  PENNSYLVANIA RESTAURANT & LODGING matters  • 25 Federal Items Reopening Pennsylvania | Bills Introduced and On-the-Move | Cocktails-to-Go Allegheny County Brings Guidelines in Line with State Guidelines Allegheny County COVID-19 Field Response Team | Philadelphia Puts the Brakes on Indoor Dining Increase in Cases | Philadelphia Predictive Scheduling | Philadelphia City Council Action PPP Extended | Paycheck Protection Flexibility Act | SBA Released PPP Loan Data COVID IV | Presidential Proclamation | CMBS Loans PPP EXTENDED With more than $130 billion left unallocated, Congress extended the Paycheck Protection Program through August 8. This extension does not change the program, it merely extends the window to apply for a PPP loan for another five weeks. We are hoping for additional changes to be made to the PPP over the coming weeks, including a “second round” for those who drew down on the loan in the first round and opening up the loan to entities that were not covered previously. PAYCHECK PROTECTION FLEXIBILITY ACT The Paycheck Protection Flexibility Act was signed into law on June 5. The Act included several improvements for the restaurant industry such as extending the expense forgiveness period from eight weeks to 24 weeks; reducing the payroll ration requirement to 60%; increasing the loan repayment period from two to five years on new loans; allowing payroll tax deferment for PPP recipients; and extending the June 30 rehiring deadline. Read the National Restaurant Association’s full summary of changes. SBA RELEASED PPP LOAN DATA The SBA released PPP loan data in early July, breaking the data into two categories. The data for loans above $150,000 included the borrowing entity name and address, number of jobs covered under the loan, voluntary demographic data, NAICS code, congressional district, and loan amount as a range (no specific amounts will be disclosed). With more than 4 million PPP loans below $150,000, SBA only released lender names and the total amount of PPP loans per state. COVID IV Sen. Wicker (R, Miss.) introduced S. 4012, titled “Restaurants Act,” earlier this summer, which contained many provisions proposed by the National Restaurant Association. However, no COVID-19 stimulus or recovery bills have targeted a specific industry, indicating that the provisions contained in the bill will likely be part of a much larger recovery package. Congressional Republicans and Democrats are considering whether to craft a new coronavirus stimulus bill in late July, and have asked the National Restaurant Association for guidance on how best to assist the industry. The Association, in turn, asked restaurant operators across the nation to take a brief survey ranking their proposed ideas for personal and industry-wide impact. From those responses, the Association presented the Blueprint for Restaurant Revival. PRESIDENTIAL PROCLAMATION President Trump signed a proclamation, titled “Suspending Entry of Aliens who Present a Risk to the U.S. Labor Market Following the Coronavirus Outbreak,” which extends foreign worker restrictions through the end of the year. It impacts H-1B, H-2B, J and L visas, equating to more than 500,000 legal guest workers. CMBS LOANS Commercial Mortgage Backed Security (CMBS) loans continue to be a major focus of the American Hotel & Lodging Association (AH&L) and Asian American Hotel Owners Association (AAHOA). These loans are not able to be deferred as standard loans are and the holders of these loans, especially in the hospitality industry, are unable to make payments; the government needs to step in. 