Operations

RESTAURANTS Act back on the table

istock

February 5, 2021

A $120 billion revitalization fund, known as the RESTAURANTS Act of 2021, to help independent restaurants and small franchisees facing COVID-19 challenges is officially on the table, thanks to senators and representatives introducing the legislation Friday morning.

"The coronavirus pandemic continues to threaten the existence of many of America's restaurants and the suppliers that support them," Senator Roger Wicker said Friday via a press release. "Without additional targeted relief, many restaurants, especially small and independent establishments, may not survive the year because of state indoor dining restrictions. The RESTAURANTS Act would provide support to help these small businesses adapt their operations and keep their employees on the payroll as our nation works to finish the fight against COVID-19."

Wicker, a Republican senator from Mississippi, introduced the bill Friday alongside Senator Kyrsten Sinema, D-Ariz., along with Representatives Earl Blumenauer, D-Ore., and Brian Fitzpatrick, R-Pa.

The National Restaurant Association is thrilled with the legislation, according to Sean Kennedy, the organization's executive vice president of Public Affairs, who called it a light at the end of a long, dark winter.

"While many other industries have started to recover, the restaurant industry finished last year in a double-dip recession, and with 2.5 million fewer jobs," he said in a press release. "These grants will put even the hardest-hit restaurants on the path to economic survival."

Considering that restaurants were the first industry to be shut down by the states and within days of the pandemic, Kennedy said restaurants required an industry-specific fund to help sustain business.

"For nearly a year, the Association, our members, and hundreds of thousands of our grassroots advocates have shared our experiences with Congress. And they listened," he said. "The bill introduced today finally reflects the unified view that all small restaurants should have access to relief — regardless of whether they are an independent or a franchise of a regional chain.

The foodservice industry is the nation's second-largest private sector employer and has an economic impact of more than $2.5 trillion dollars annually.

"To once again be the engine that the economy relies on, our members need the help that only the RESTAURANTS Act can provide," Kennedy said.

The RESTAURANTS Act of 2021 is modeled after legislation the authors introduced last year to Congress with the new proposal creating a $120 billion Restaurant Revitalization Fund to provide relief to food service or drinking establishments that are part of a group of up to 20 facilities.

Owners could apply for grants of up to $10 million to cover eligible expenses retroactively to Feb. 15, 2020, and ending eight months after the legislation is signed into law.

Grants could be used to support payroll, benefits, mortgage, rent, utilities, building maintenance and construction of outdoor facilities, supplies (including protective equipment and cleaning materials), food, operational expenses, paid sick leave, debt obligations to suppliers, and any other essential expenses.

The legislation also includes several new provisions to help restaurants and their employees and ensure the integrity of the program.

"Ensuring the 11 million people employed by restaurants and bars can continue to earn a living is vital to rebuilding our economy after this pandemic," Erika Polmar, executive director of the Independent Restaurant Coalition," said in the release.