State’s HELP loan program raises annual restaurant sales cap to $ 15 million
The Delaware Division of Small Business changed the state’s HELP program after restaurant owners struggled to qualify for the program.
Among the changes is increasing the annual sales limit from $ 2.5 million to $ 15 million. The restaurant industry had been pushing for the changes.
“Unfortunately, one of the key industries for which the HELP program was created, the restaurant industry, has had difficulty accessing this program due to structural difficulties in their typical business models. For this reason, the Division of Small Business is preparing to modify the HELP program for these businesses in order to respond to this and preserve as many small businesses in Delaware as possible, ”a statement read.
Lending activity within the framework of the AID. program was lower than expected.
In contrast, the federal paycheck protection program quickly depleted its $ 349 billion in funding. The program offers forgivable loans based on staff retention by employees.
“The idea was that HELP loans would provide funding to some who might not be able to access this support or not be able to wait for it to be made available to them. Primarily, it was assumed that these would be the smallest businesses in our community, ”the division noted.
Qualifying Business ”means businesses whose first four-digit NAICS code is 7225 (restaurants). The sales cap of $ 2.5 million remains for all other covered businesses that qualify under HEL).
Layoffs have been high in the industry as emergency orders have led restaurants to restrict themselves to take-out activities that generate a fraction of normal income. The revenue cap also excluded many restaurants which had larger staff. or several locations
The changes are as follows:
- The income limit for an eligible business in this category is increased to $ 15 million.
- Qualifying businesses in this category can apply for monthly loans of up to $ 10,000 to cover a range of fixed expenses.
- If a qualifying business’s total mortgage or rental payments in a month (for one or more locations) exceed $ 10,000, it can apply for a loan of up to $ 50,000 per month to cover these two expenses.
- The eligibility conditions remain the same even for these extended loans – an applicant must prove that they have paid their lease or mortgage for at least 10/12 months before applying for the first aid. An application must include proof that this requirement is met to be approved. A letter from an owner or bank on organization letterhead certifying this is sufficient for these purposes.
- Applicants must submit a Balance Sheet and Income Statement (P&L) for the calendar year 2019 to certify their eligibility.
- The terms of all HELP loans remain unchanged: 9 months without repayment, repayment schedule over 10 years thereafter, 0% interest (monthly payments per $ 10,000 borrowed are equal to approximately $ 85 / month).