The CARES Act for Coffee Shops
Details on the CARES ACT for Coffee Shops, Cafes, and Coffee Bars including how to access PPP loans and resources for small business owners.
nick-martin
Apr 2, 2020
Background
As part of the CARES Act, the PPP (Payroll Protection Program) is providing inexpensive loans to provide relief for coffee shops during the COVID-19 pandemic.
Our friends at Odeko do incredible work to empower coffee entrepreneurs and times of crisis are no exception. Below, we have included their breakdown which offers guidance and tools for coffee shop owners related to the CARES ACT.
How to Access Funds
New PPP (Payroll Protection Program) loans are being made available by the CARES Act. These loans are being made through lenders which are currently approved for the pre-existing SBA 7A lending program.
If you already have a lender that is providing PPP loans it's advisable to go to them directly ASAP as applications are being accepted as of Friday, April 3rd.
If you don't have an SBA 7A lender in mind, we can help with getting your paperwork together, at no charge. We just want coffee to come back.
Loans are forgivable if certain stipulations are met in how they are used. They can cover up to two months of average monthly payroll costs from the last year plus an additional 25% of that amount for other specific expenses. The full amount is subject to a $10 million cap.
Program Overview
The program overview includes information on:
- When, where and how to apply
- Who is eligible
- What can the loans be used for
- What counts as payroll costs
- Criteria for accessing loan forgiveness
- Loan repayment, interest, deferment info
These loans are being dispersed on a first come first serve basis. The $349B made available is expected to dry up very quickly.
Resources
For more resources and tips to adapt during the COVID-19 crisis, email us directly at success@joe.coffee.