This website allows anyone to see which restaurants have received more than $ 150,000 in federal loans
A new website called PPP espionage provides full access to a database of businesses that have received at least $ 150,000 in loans from the Federal Paycheck Protection Program, including restaurants and bars. Earlier this week, the Small Business Administration posted a huge data file with information on which companies received funds, an approximate range of the total loan amount, the date the loans were received and the number of jobs retained. The information was released due to Democrats’ demands want more transparency around the expenses of 2,000 billion dollars CARES Law. Some companies claim they have never received federal relief loans despite being listed in the data, adding to the confusion even more.
But taking the list at face value, the PPP Spy website has revealing information about well-known restaurant and bar operators who have received funding in order to keep employees paid. Originally, companies were required to use 75% of their P3 funds on employee payrolls in order to qualify for a loan forgiveness, although this figure subsequently rose to 60%. In addition, the the period of use of funds has been extended from eight weeks to 24 weeks. The remaining loan funds can be used for other purposes, such as rent, utilities, and employee health costs.
At the start of the pandemic, when many non-restaurant businesses were allowed to continue operating, restaurants and bars were ordered to close their indoor spaces, resulting in kitchen and reception staff being placed on leave. Restaurants trying to rehire employees to meet federal loan repayment requirements sometimes find themselves in a difficult position, rehiring workers for work that doesn’t need to be done – like serving tables when dining rooms. eat are closed – to get a loan discount.
Hollywood restaurant Yamashiro, for example, has come under scrutiny for offering maintenance work such as plumbing and electrical to old service staff. Yamashiro’s parent group, Ceder Restaurant Group, LLC, received somewhere between $ 350,000 and $ 1 million, according to PPP Spy, thus retaining 120 jobs. Loan terms require companies to make a ‘good faith’ offer to employees to return to work, meaning workers would either have to choose a position they might not be qualified for or risk losing. their unemployment benefits.
Even though it seemed like most of the restaurants in LA were excluded from the PPP in the first round, it is clear that many companies were successful in the second round of financing. Bestia received between $ 1 million and $ 2 million, retaining 121 jobs, while République also received a loan in the same range while retaining 202 jobs. 71 above and Takami downtown disclosed earlier than he received $ 1.5 million for 200 employee positions, while Josef Centeno’s restaurant group received between $ 150,000 and $ 350,000 for 16 jobs. Vivian Ku’s restaurants Pine & Crane & Joy, owned by SK Restaurant Concepts, LLC, secured between $ 350,000 and $ 1 million for 48 jobs. The Pouring With Heart bar group, which operates establishments like Imperial Western and Seven Grand in downtown LA, received between $ 2 million and $ 5 million for 250 jobs.
It is difficult to quantify from this website how many restaurants and bars in LA have received more than $ 150,000 in federal relief funds, although more than 5,700 businesses are listed for the city of Los Angeles. Since the Los Angeles area includes other municipalities such as Santa Monica and West Hollywood, the number of businesses is likely even higher than that. Anyone can type search queries for their local restaurant and bars to see basic information about federal loans granted.
These federal loans were a lifeline for restaurants and bars that have been ordered to close their interior spaces during the coronavirus pandemic. Although LA County allowed a brief opening period for the dining rooms in June, they were closed, only alfresco dining allowed. Bars had a little over a week to reopen before being ordered to close indefinitely at the end of June. Without these federal funds, many of Los Angeles’ most beloved institutions would have closed for good, and indeed many have completely closed due to the pandemic.