Changes to the Payroll Protection Program will assist with Oregon’s industry survival rate.
“The changes negotiated on behalf of our nation’s hospitality industry are considerable and will directly assist small businesses in their push to survive the prolonged nature of the COVID-19 crisis,” said Jason Brandt, President & CEO for the Oregon Restaurant & Lodging Association. “Oregon’s hospitality businesses have been applying at a feverish pitch for the program in partnership with their lending institution and the benefits of round two are considerably better compared to the benefits of round one.”
A number of boosts from the federal government should make a considerable difference in the numbers of hospitality businesses able to hold on–although hundreds if not more are still expected to permanently close their doors in Oregon alone.
Recent benefits secured include:
- Tax deductibility for the first and second round of Payroll Protection Program dollars
- Access to a PPP loan equating to 3.5 times your monthly payroll levels back in 2019 if you are operating a hospitality business
- Utilization of PPP dollars for perishable food expenses and
- The ability to utilize the funds over a 24-week period
“Local, family-owned businesses like us (McMenamins), that have grown up here in Oregon will find it increasingly difficult to stay afloat if the current relief measures are not combined with more sustainable operations,” said Shannon McMenamin who helps lead the family business of pubs, breweries and historic hotels. “We are incredibly limited in what we can do to keep our people employed in an unpredictable environment without more flexibility from Governor Brown and her professional staff. I know we can provide some indoor dining safely right now.”
Brandt echoed the call for more sustainable options for the hospitality industry as the state association continues fielding calls from small businesses across the state in need of more flexibility.
“Outside of PPP support the industry in Oregon continues to have considerable concerns about the path back to sustainable operations,” said Brandt. “PPP will help a significant number of small businesses fight through the coming months, but the importance of effective and efficient vaccine distribution can’t be overstated. It’s the key ingredient to helping propel statewide consumer demand and we remain hopeful that pent up demand will be our new best friend.”
For more information on the efforts of the Oregon Restaurant & Lodging Association please visit OregonRLA.org.
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The Oregon Restaurant & Lodging Association is the leading business association for the foodservice and lodging industry in Oregon, which before COVID-19 provided over 180,000 paychecks to working Oregonians. According to the Oregon Employment Department’s December data, over 50,000 Oregonians that once had a job in hospitality do not have work available to return to.