As a manufacturer of restaurant furniture and a frequent diner, I don't want to see any restaurants go out of business. I am especially scared of restaurants and other businesses that took PPP funds. The government just made a decision with significant financial ramifications. To make it simple, you are going to owe taxes on that money. I am pretty sure you assumed that it was tax free when you received it. If you spend all of it assuming you would get more, there may not be more coming. If you spent it all thinking its forgiven and you have nothing left, there could be some problems.
I am not a tax expert, I am just a guy selling bar stools trying to figure out whether to bring in stock. From what I can tell being taxed on the PPP loan is going to make a lot more businesses consider bankruptcy. The problem with bankruptcy is that you don't usually get out of paying your US debts. So bankrupt restaurant owners are going to have to start back up already owing money. It s going to keep a lot of talent to the side as opening a traditional restaurant seems to be a risky move.
If you are using the PPP loan and using it properly, make sure to keep aside money to pay taxes. Technically the loan isn't taxable. What the government has said is that the tax deductible items that you purchased would be taxable if they were purchased with the PPP loan.
We need a restaurant bail out. Restaurants have been some of the hardest hit businesses. If he government doesn't help them like it helped GM, we will not have nearly as many restaurants in the future and restaurants are part of a large food ecosystem that employees millions. We need a second round of PPP money., We need promises of a 3rd if things keep going. We need the PPP money to be tax free. We need a simple way to apply for the money and to apply for forgiveness.