A guide to the CARES Act

Grubhub is always looking for ways to support our restaurants. In addition to the programs we offer, there are other means of support for restaurant owners, including the most recently introduced CARES Act. The Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, is a law meant to address the economic fallout of the 2020 coronavirus pandemic in the United States.

To help restaurant owners better understand the new programs available to them, we have compiled useful information on the CARES Act.

CARES Act background information

  • The $2 trillion Coronavirus Aid, Relief & Economic Security (CARES) Act was signed into law on March 27, 2020
  • The bill includes a $349 billion federally guaranteed lending program for small businesses (“Paycheck Protection Program” or “PPP”)
  • Small businesses and sole proprietors can apply for a loan immediately with participating lenders

Is your restaurant eligible?

  • Most restaurants with fewer than 500 employees (full and part-time) per physical location
  • Funds must be used to retain workers, maintain payroll, and pay mortgage interest, interest on other debt, rent and utilities.

CARES Act Loan Structure

  • Key Features
    • Term: 2 years
    • Interest rate: 0.5% fixed
    • 100% funded (no “down payment” or other borrower contribution)
    • No prepayment penalties
    • No personal guarantee or collateral required
    • No borrower or lender fees
  • Further details of the PPP Loan can be found here

How to apply for the CARES Act

  • PPP Application
  • Most recent four quarters of payroll tax form 941
  • Headcount verification / monthly payroll (February 2019 – March 2020)
  • 2019 P&L or 2019 business tax returns
  • Contact your current bank or another financial institution to submit your application

CARES Act timing

  • After abbreviated underwriting and approval process, the loan is typically funded within 1-2 days
  • PPP is available to eligible borrowers through June 30, 2020

Potential lenders

  • ForwardLine
  • Contact your current bank as a potential lender

Additional Resources

[Updated 2021] The Restaurant Revitalization Fund

On March 11th, President Biden signed into law the 1.9 trillion dollar American Rescue Plan, which will send much-needed aid to millions of Americans still struggling from the COVID-19 pandemic. This plan also includes a 28.6 billion dollar Restaurant Revitalization Fund to help support the food and drink service industry during this difficult time. 

To learn more about the Restaurant Revitalization Fund please click here. 

Grubhub is here to serve you during this difficult time

We are committed to our restaurant partners, drivers, and customers. Below is a list of additional resources we have compiled to help restaurants that are reopening: 

If you are a restaurant that is not currently working with Grubhub and would like to learn how a partnership with Grubhub can help you through these unprecedented times, please sign up here and a sales executive will reach out to you.

Note that this site is provided for informational purposes only.  We cannot provide you with legal advice and can’t be held responsible for actions you take on the basis of the information we have provided, so you should analyze the provisions carefully and if necessary consult your own advisor.