Businesses will get Direct Relief with Restaurant Revitalization Fund

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On Wednesday, President Joe Biden continued to tout the implementation of the American Rescue Plan and called the newly launched Restaurant Revitalization Fund “badly needed”. The application process launched on Monday for the $28.6 billion in funding for restaurants, bars, and other small food and beverage businesses hit hard by the coronavirus pandemic. President Biden said, “Restaurants are more than a major driver in our economy, they’re woven into the fabric of our communities. And so for many families restaurants are the gateway to opportunity, a key part of the American story”. Point to be noted that the restaurant industry has been disproportionately affected by the COVID-19 pandemic. At least half of workers in the industry lost their jobs in the first few months of the pandemic.

However, the United States continues to recover, as the industry remains down 1.8 million jobs since February 2020. Biden also said, “We’re opening the doors of this program so that restaurants all over the country can open their doors again. We want our economy to recover in a way that deals everyone in. And our restaurants need a seat at the table”. He said the US is relying on restaurants to play a big role in the economic recovery. More than 186,200 restaurants, bars, and other businesses applied for relief in the first 2 days of the newly launched program. The applications include businesses from all 50 states, the District of Columbia, and 5 US territories. So, businesses will be able to use the money for expenses like payroll and rent.

Moreover, President Biden said some have argued the federal stimulus American Rescue Plan wasn’t needed, but the many applications already submitted for the fund show it was “badly needed”. The Independent Restaurant Coalition advocated for the funds and nearly 1 in 3 restaurants and bars applied for money in the first 48 hours. The Small Business Administration is prioritizing businesses owned and controlled by women, veterans, and other socially or economically disadvantaged individuals for the first 21 days of the program. At least 97,600 applications from such business owners were submitted in the first 2 days. It is noteworthy that all eligible applications will be funded on a first-come-first-serve basis after the first 21 days. Applicants can apply for grants equal to their pandemic-related losses, with up to $10 million per business group and $5 million per location.