Some of you are rolling in government money.
Some restaurants were lucky enough to obtain first and second round PPP’s, first and second round ERTC refunds, EIDL loans and RRF grant money. In some instances totaling in the hundreds of thousands and even in the millions of dollars (see accompanying article on page 2 about the increase in EIDL loans)
With this much money available you might have a large chunk of it sitting in the bank.
Two observations we would like to pass on to you:
- Even if you have a ton of money sitting in the bank, be careful to segregate the government money from your normal operations and transfer it to pay legitimate monthly business expenses (including payroll and food). By using the government money to pay expenses, that leaves more sale dollars to drop down to the bottom line. The bottom line monies is then legitimately available for you to take as profits.
- You cannot legitimately use government money for investment purposes or to build or buy new locations. This is prohibited.
The safest thing to do is use the procedure described above to pay monthly expenses with government money which allows your profits to be larger. Larger profits can then be used for investment and expansion.
The irony is, the extra money is there but the workers aren’t. All industries throughout the country are experiencing worker shortages. The reasons are many and involved but no one has the answer right now.
