What Restaurants Need to Know About PPP Loans

Nobody is hurting more right now than small business owners – especially in the restaurant industry.

In response, the government has allocated $349 billion in funding for small business loans through the Paycheck Protection Program (PPP), under the CARES Act. But there are still a lot of questions about this process.

To help you better understand PPP loans and make it easier for you to apply, we partnered with Lendio, the largest small business loan marketplace in the U.S. to help give you more information on these loans, the application process, and more. 

You can listen to our webinar What Restaurants Need to Know About the Paycheck Protection Program (PPP) NOW to gain actionable insights on who’s eligible, how to apply, and what to expect throughout the process.

If You’re Ready to Apply for a PPP Loan

TouchBistro Customer? Apply Here
Not a TouchBistro Customer? Find Out More

Payment Protection Program (PPP) FAQ

Here are answers to some of the most common questions we heard during our PPP webinar.

If employees have been furloughed, can I hire them back and still have them qualify for payroll expenses under PPP?

Yes. You can bring them back and it would qualify for loan forgiveness.

What if the owners do not receive payroll? Am I still eligible?

Yes. You can show wage, commission, income, net earnings from self-employment or similar compensation.

If I bring back fewer employees when things open up again, due to slower sales, do I still qualify for some loan forgiveness?

Yes. You don’t have to hire all employees back, or have them all at full-time (40 hours per week). However, your forgiveness will be reduced if your payroll is not at the same level.

How are tips calculated to be a part of the payroll expenses?

Tips can be included in payroll expenses based on employer records of past tips, but they will have to be verified with tax documentation, so be sure to use this documentation to calculate it.

Are the loans forgivable if only owners are on the payroll?


Most of my employees are part-time or transient. To receive loan forgiveness, do I need to have the same number of employees on my payroll as I did last spring?

If you don’t hire back the same number of employees, you’ll still be eligible for partial forgiveness. The forgiveness amount will be reduced by the percent decrease in the number of employees.

If my business hasn’t reopened yet, can I put employees back on the payroll and just pay them to stay home?

Yes. Even if you have laid off employees, you will still be eligible for loan forgiveness if you bring your team back by June 30, 2020.

Photo of Dana Krook
by Dana Krook

Dana is the former Content Marketing Manager at TouchBistro, sharing tips for and stories of restaurateurs turning their passion into success. She loves homemade hot sauce, deep fried pickles and finding excuses to consume real maple syrup.