Concerns from participating banks about the amount of interest they can charge for Payroll Protection Loans, and continued questions about eligibility and use of proceeds, forced the Small Business Administration (SBA) to issue revised loan guidelines late Thursday night.
Options for beleaguered restaurants owners are quickly mobilizing and here is what you need to know. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, recently passed by Congress and signed by President Trump on March 27, allows the Small Business Administration (SBA) to guaranty $349 billion in loans to small businesses that have been impacted economically by the virus.
Obviously, these are tough times for the restaurant industry. It behooves restaurant owners to effectively use their advisors, particularly their accountants and your lawyers. Your goal is twofold: Communicate most effectively with all the constituencies you have to deal with and be in the best position possible coming out of this crisis.
Along with you, we are closely watching the impact COVID-19 is having on our communities and businesses. We understand the tremendous impact that the restaurant and franchise industries have on the economy.
The mergers & acquisition market for restaurant franchisees and multi-unit restaurant brands has changed dramatically over the past three decades, and Brookwood Associates’ Amy Forrestal has had a front row seat to that evolution.
2019 might be considered an off year for public restaurant chains as only seven companies outperformed the outsized 28.9% return of the S&P 500 benchmark. However, the industry’s stock market benchmark, the Restaurant Finance Monitor Stock index, weighted 70% in quick-serve restaurants and 30% in casual dining ones, returned 16.74%, an otherwise impressive performance.
One of the notable career achievements for Trinity Capital founder and managing partner Kevin Burke is the role he played in helping to develop and broaden what has become a $12 billion national franchise loan securitization market on Wall Street.
CoreLife Eatery, based in Binghamton, New York, is building a lifestyle brand from the inside out. CoreLife embodies an intersection between “we are what we eat” and “find what works for you.” The company further describes its objective: “Food determines how you feel, how you look, and most importantly, how you perform.” Visit www.rogerlipton.com to view free restaurant company descriptions and other articles.
There have been many articles written, sporadically timed, about the impending recession. The timing of such a projection has been challenging. During our Toroso investment committee meetings we too often discuss this risk as well as many others that can affect portfolio outcomes.
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FINANCE & REAL ESTATE DIRECTORY
Franchise Times would like to introduce you to the lenders and real estate advisory sources that are targeting the restaurant industry.