No other industry or sector of the economy has suffered as much as the foodservice industry, and no other industry will take as long to recover. COVID-19 closures and the economic downturn have crippled restaurants and the farmers and distributors that supply them their food and supplies. A recent study finds that 85% of independent restaurants may go out of business by the end of 2020. Recovery has gone from a temporary challenge to a seemingly permanent industry disruption.
How Can Congress Help?
Support the Real Economic Support That Acknowledges Unique Restaurant Assistance Needed to Survive (RESTAURANTS) Act of 2021
The RESTAURANTS Act
is bipartisan legislation that establishes a $120 billion revitalization fund to support independent restaurants and small franchisees as they deal with the long-term structural challenges facing the industry because of COVID-19.The bill provides real relief for any small restaurant that can demonstrate they lost revenue in 2020. Federal grants under the bill can be used for everything from retaining workers to operational expenses like inventory and rent.
What are the details?
$120 Billion Fund:
The RESTAURANTS Act establishes a $120 billion “Restaurant Revitalization Fund” managed by the U.S. Department of Treasury to provide direct grants to eligible entities.
Begins February 15, 2021 and ends 8 months after enactment of the program. If funds are not spent within 8 months of enactment, the entity’s funds convert to a loan with an interest rate of 1% with a maturity date of 10 years.
Who is Eligible:
An entity that owns or operates—as of March 13, 2020—20 or fewer establishments (together with any affiliated business), regardless of the type of ownership of the locations and whether those locations do business under the same or multiple names. Entities can be a restaurant, food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting room, taproom, licensed facility or premises of a beverage alcohol producer where the public may taste, sample, or purchase products, or other similar place of business in which the public or patrons assemble for the primary purpose of being served food or drink.
How can you help?
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