Prioritizing payroll during the COVID-19 pandemic

December 10, 2020

Vic Moea and Homero Aviles, owners of Sinful Subs in Las Vegas, worked in stride to make the most of the Payment Protection Program (PPP) so they could keep their entire staff on payroll through the economic uncertainty of COVID-19.

Many small business owners are facing financial uncertainty as COVID-19 continues to make it difficult to serve clients and customers as they once did. In order to stay afloat, businesses have had to take out government loans to cover expenses like rent, supplies and payroll. However, when there are so many expenses to take care of, it can be hard to know which ones to prioritize if you do qualify for assistance. On top of all of that, getting your business in the best position to apply for a loan isn’t always a straightforward journey.

Vic Moea and Homero Aviles, owners of Sinful Subs in Las Vegas, Nevada, ran into both issues as they worked to keep their popular sandwich shop up and running. Vic and Homero decided to apply for Payment Protection Program (PPP) that would give them the tools they needed to meet their ultimate goal: keeping every staff member at their restaurant on payroll.

“When we initially had to close, our focus was on feeding people — the people who were on our payroll,” Vic said. “Secondly, rent. We didn’t know how things were going to pan out when restaurant owners where having a hard time paying their rent.”

There are lots of variables lenders consider when they look at a loan application and understanding how each of them should be presented can be tricky. As they worked on applying for a loan, they worked with their banker to position Sinful Subs in the best possible light.

“When we initially had to close, our focus was on feeding people — the people who were on our payroll. Secondly, rent.”

Vic submitted the application and Sinful Subs was approved for a loan, but the next step was figuring out how to prioritize using the funds. When it comes to the Payment Protection Program (PPP), there’s guidance from the Small Business Administration (SBA) small business owners can follow as they decide how to use their funds. Getting your financial documentation in order and deciding what you’re going to use the funds for in advance are important first steps that they and other business owners have had to carefully iron out.

Ultimately, they received the Payment Protection Program (PPP) and got the funds they needed to keep Sinful Subs up and running, and the loan money was primarily used for payroll and rent. Most notably, their quick work on securing a loan meant there was no lapse in pay for employees of Sinful Subs. “Not only did the money help us keep things up and running when we couldn’t have the dining room open, it also helped us invest in supplies that kept customers safe,” Vic said.

Sinful Subs is on track financially, and Vic and Homero are working on opening their second restaurant. Vic feels enthusiastic about the future. “We’re excited to open our second restaurant, and that operations at Sinful Subs are running smoothly.”

 

Continue reading more stories about how small business owners navigated unprecedented times.

Learn about U.S. Bank

Related content

These small home improvement projects offer big returns on investment

Refining your search for an insurance custodian

Digital banking and cloud accounting software: How they work together

In a digital world, Liberty Puzzles embraces true connection

Webinar: Mortgage basics: Finding the right home loan for you

For small business growth, consider the international market

8 Ways for small business owners to manage their cash flow

How to fund your business without using 401(k) savings

Dear Money Mentor: What is cash-out refinancing and is it right for you?

Can ABL options fuel your business — and keep it running?

3 simple brand awareness tips for your business

How to get started creating your business plan

Collateral options for ABL: What’s eligible, what’s not?

ABL mythbusters: The truth about asset-based lending

What’s the difference between Fannie Mae and Freddie Mac?

Changes in credit reporting and what it means for homebuyers

Building a business with a great product and a greater purpose

5 ways a business credit card program can grow your business

How small business owners can budget for the holiday season

Why credit cards should be the first choice for business payments

Are you ready to restart your federal student loan payments?

Improve online presence your business

5 tips to use your credit card wisely and steer clear of debt

Webinar: CRE technology trends

Business risk management for owners of small companies

Webinar: CSM corporation re-thinks AP

5 winning strategies for managing liquidity in volatile times

Safeguarding the payment experience through contactless

COVID-19 safety recommendations: Are you ready to reopen?

4 benefits of independent loan agents

Save time with mobile apps for business finances

Middle-market direct lending: Obstacles and opportunities

High-cost housing and down payment options in relocation

At your service: outsourcing loan agency work

Preparing for your custodian conversion

4 questions you should ask about your custodian

Maximizing your infrastructure finance project with a full suite trustee and agent

How to maximise your infrastructure finance project

Insource or outsource? 10 considerations

Easier onboarding: What to look for in an administrator

Trends in economics, immigration and mobility policy

Putting home ownership within reach for a diverse workforce

How this photography business persevered through tough times

How jumbo loans can help home buyers and your builder business

How to apply for a business credit card

5 questions business owners need to consider before taking out a loan

Prioritizing payroll during the COVID-19 pandemic

Meet your business credit card support team

How to establish your business credit score

5 tips to help you land a small business loan

7 uncommon recruiting strategies that you may not have tried yet

Using merchant technology manage limited staffing

The growing importance of a strong corporate culture

4 restaurant models that aren’t dine-in

Tools that can streamline staffing and employee management

Gift cards can extend ROI into 2022

Omnichannel retail: 4 best practices for navigating the new normal

Streamline operations with all-in-one small business financial support

Is your restaurant Google-friendly?

How to reward employees and teams who perform well

8 ways to increase employee engagement

Planning for restaurant startup costs and when to expect them

The moment I knew I’d made it: The Cheesecakery

Business tips and advice for Black entrepreneurs

How a bright idea became a successful business (in Charlotte, North Carolina)

How to establish your business credit score

What is needed to apply for an SBA loan

10 tips on how to run a successful family business

Empowering team members

Why retail merchandise returns will be a differentiator in 2022

How business owners are managing during the supply chain crisis

How increased supply chain visibility can combat disruptors

How a travel clothing retailer is staying true to its brand values

Use this one simple email marketing tip to increase your reach

Opening a business on a budget during COVID-19

When to consider switching banks for your business

How I did it: Grew my business by branching out

How iPads can help increase efficiency in your salon

How a small business owner is making the workplace work for women

How small businesses are growing sales with online ordering

When small business and community work together

6 common financial mistakes made by dentists (and how to avoid them)

What are conforming loan limits and why are they increasing

How (and why) to get your business supplier diversity certification

Business credit card 101

Do I need a credit card for my small business?

What kind of credit card does my small business need?

Checklist: Increase lead generation with website optimization

The role of ethics in the hiring process

Choosing your M&A escrow partner

For today's relocating home buyers, time and money are everything

Crypto + Relo: Mobility industry impacts

How to test new business ideas

How to increase your savings

How a group fitness studio made the most of online workouts

Year-end financial checklist

Community and Coffee: How one small business owner is breaking down barriers

How community gave life to lifestyle boutique Les Sol

The San Francisco bridal shop that’s been making memories for 30 years

Community behind Elsa’s House of Sleep

Honey Luxury Beauté: growing a side project into an eye-catching beauty business

How Wenonah Canoe is making a boom in business last

How Lip Esteem is empowering women

How a family-owned newspaper is serving its community

How running a business that aligns with core values is paying off

How Gentlemen Cuts helps its community shine

Meet the Milwaukee businessman behind Funky Fresh Spring Rolls

Complying with changes in fund regulations

Evaluating interest rate risk creating risk management strategy

Tech lifecycle refresh: A tale of two philosophies

How to identify what technology is needed for your small business

Beyond Mars, AeroVironment’s earthly expansion fueled by U.S. Bank

High-yield bond issuance: 5 traits lawyers should look for in a service provider

3 tips to maintain flexibility in supply chain management

How to build a content team

Test your loan savvy

Webinar: Mortgage basics: What’s the difference between interest rate and annual percentage rate?

How do I prequalify for a mortgage?

Can you take advantage of the dead equity in your home?

Webinar: Mortgage basics: How much house can you afford?

Is a home equity line of credit (HELOC) right for you?

8 steps to take before you buy a home

Webinar: Mortgage basics: 3 Key steps in the homebuying process

Webinar: Mortgage basics: Buying or renting – What’s right for you?

How to use your home equity to finance home improvements

Webinar: Mortgage basics: What is refinancing, and is it right for you?

Should you get a home equity loan or a home equity line of credit?

6 questions to ask before buying a new home

What is refinancing a mortgage?

What to know when buying a home with your significant other

Webinar: Mortgage basics: How does your credit score impact the homebuying experience?

What is a home equity line of credit (HELOC) and what can it be used for?

First-time homebuyer’s guide to getting a mortgage

Is it the right time to refinance your mortgage?

Overcoming high interest rates: Getting your homeownership goals back on track

Money Moments: How to finance a home addition

10 uses for a home equity loan

Is a home equity loan for college the right choice for your student

Travel for less: Smart (not cheap) ways to spend less on your next trip

How to apply for federal student aid through the FAFSA

Tips to overcome three common savings hurdles

A passion for fashion: How this student works the gig economy

Helpful tips for safe and smart charitable giving

How I kicked my online shopping habit and got my spending under control

What to consider before taking out a student loan

Common unexpected expenses and three ways to pay for them

Allowance basics for parents and kids

6 pandemic money habits to keep for the long term

How I did it: Paid off student loans

The A to Z’s of college loan terms

4 tips for protecting your business against Coronavirus-related scams

3 reasons governments and educational institutions should implement service fees

Administrator accountability: 5 questions to evaluate outsourcing risks

Making the leap from employee to owner

Mapping out success for a small-business owner

Costs to consider when starting a business

How Shampoo’ed is transforming hair and inspiring entrepreneurs

Questions to ask before buying a car

Addressing financial uncertainty in international business

Webinar: Mortgage basics: Prequalification or pre-approval – What do I need?

Your financial aid guide: What are your options?

Webinar: AP automation for commercial real estate

An investor’s guide to marketplace lending

What is a CLO?

The future of financial leadership: More strategy, fewer spreadsheets

5 tips for managing your business cash flow

Personal loans first-timer's guide: 7 questions to ask

How to spot a credit repair scam

6 ways to spring clean your finances and save money year-round

How to cut mindless spending: real tips from real people

Real world advice: How parents are teaching their kids about money

Practical money tips we've learned from our dads

How to stop living paycheck to paycheck post-pay increase

What you should know about buying a car

What you need to know before buying a new or used car

Take the stress out of buying your teen a car

How to choose the best car loan for you

Give a prepaid rewards card for employee recognition

Employee benefit plan management: trustee vs. custodian

Practical money skills and financial tips for college students

Making a ‘workout’ work out as a business

5 unique ways to take your credit card benefits further

5 tips to use your credit card wisely and steer clear of debt

Co-signing 101: Applying for a loan with co-borrower

What’s a subordination agreement, and why does it matter?

Understanding the true cost of borrowing: What is amortization, and why does it matter?

How to use debt to build wealth

30-day adulting challenge: Financial wellness tasks to complete in a month

How I did it: My house remodel

Everything you need to know about consolidating debts

Student checklist: Preparing for college

Celebrity Cake Studio’s two decades of growth and success

How Al’s Breakfast is bringing people together

What you should know about licensing agreements

Webinar: CRE Digital Transformation – Balancing Digitization with cybersecurity risk

Webinar: CRE Digital Transformation – Balancing Digitization with cybersecurity risk

5 steps for creating an employee recognition program

Webinar: Uncover the cost: College diploma

Tech tools to keep your restaurant operations running smoothly

Your quick guide to loans and obtaining credit

How to hire employees: Employee referral vs. external hiring

Break free from cash flow management constraints

Service provider due diligence and selection best practices

How tenacity brought Taste of Rondo to life

How a bar trivia company went digital during COVID-19

4 questions to ask before you buy an investment property

Parent checklist: Preparing for college

Evaluating interest rate risk creating risk management strategy

Disclosures

Start of disclosure content

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Mortgage, home equity and credit products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.