Catherwood LibraryILR School

Even if they applied for a Paycheck Protection loan in the early days of the pandemic, restaurants are finding that the money has run out while the pandemic continues to churn on, with many states re-closing restaurants in states where cases have re-surged. Even in parts of the country where cases have been contained, demand for dining has remained low as customers remain wary amidst continued social distancing requirements. Before the pandemic, there were 12 million workers in restaurants and bars, with nearly two-thirds in businesses with fewer than 500 workers. In April, employment was cut in half as many restaurants closed. The loans' original requirements were that businesses had to use them within 8 weeks in order to get the loans forgiven, but with restaurants closed, employers had to pay their employees for not working. Then when re-opening, they found they could not pay their full-time staff due to low demand.