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Restaurants are big beneficiaries of the COVID-19 bailout bill

New York – Restaurants devastated by the coronavirus outbreak have obtained a lifeline from a pandemic relief package awaiting final approval in the house.

The bill passed by the Senate on Saturday will fund the Paycheck Protection Program and generally provide indirect support to SMEs through exciting payments and unemployment benefits. However, the restaurant has gained the largest share of direct support. Grants to restaurants whose revenues declined in 2020 as a result of the pandemic were $ 28.6 billion.

The bill seeks subsidies equivalent to restaurant revenue losses, up to $ 10 million per company and up to $ 5 million per location. Eligible companies cannot own more than 20 locations and cannot be listed. The bill secures $ 5 billion for the smallest restaurants with annual sales of $ 500,000 or less.

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Industry groups welcomed the grant. The National Restaurant Association, an industry group, said the Senate added $ 3.6 billion to the $ 25 billion allocated in the original bill. The $ 28.6 billion bill was only about one-tenth of the amount the industry lost during the pandemic, which restaurant groups consider to be a victory.

“It will keep the door open,” said Sean Kennedy, executive vice president of the group.

The restaurant has declined due to a pandemic that led to a government-ordered closure, yet keeps many dining guests away. As of December 1, more than 110,000 US restaurants were temporarily or permanently closed, according to the National Restaurant Association. This is 17% of the number of restaurants that were open before the pandemic. According to the group, January industry-wide sales fell by more than 16% year-on-year.

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Small business supporters are happy with the overall bill, and consumers can spend more money on small businesses with $ 1,400 stimulus payments to individuals and families and continued unemployment benefits. He said he could.

“Whenever you give money to consumers, it helps small businesses, no matter how they get there,” said Keith Hall, chairman of the National Self-employed Association. Probably profit.

Congress has added more than $ 7 billion to the $ 800 billion allocated to the latest round of PPP, which began on January 11. The Small and Medium Business Administration has approved approximately $ 680 billion in loans so far during the round, for a total of $ 1.2 trillion since April.

However, small business supporters are concerned because the bill did not extend the program, which is due to end on March 31st. Congress can continue to extend PPP. The Business & Entrepreneurship Council called the bill a “missed opportunity” to improve pandemic bailouts for small businesses.

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Kerrigan was also concerned because many companies did not raise the SBA’s economic injury and mortgage limit, which many companies were looking for at the time of the virus outbreak, by $ 150,000.

The bill also includes $ 100 million for SBA-sponsored SME development centers and other organizations that provide free advice and education to SMEs. It also includes $ 10 billion for the State Small Business Credit Initiative, a program aimed at helping the state lend to small businesses.

Kerrigan was optimistic that the bill would have a positive impact on the economy and, by extension, small businesses.

“We expect an overall rise that will help stimulate the momentum and confidence that is being built on the main street,” she said. But instead of using stimulating payments, she warned that many individuals and families would spend the money on savings and debt repayments.

“Therefore, SMEs must continue to compete fiercely for available consumer dollars,” she said.

Copyright 2021 AP communication. all rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

Restaurants are big beneficiaries of the COVID-19 bailout bill

Source link Restaurants are big beneficiaries of the COVID-19 bailout bill

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