The $120 billion RESTAURANTS Act of 2021 will finally provide a much needed safety net to those working in the hospitality industry. On Thursday, President Biden signed the $1.9 trillion American Rescue Plan into law. The wide-ranging $1.9 trillion bill is aimed at boosting the American economy during the Covid-19 pandemic. In addition to issuing $1,400 direct payments to individuals and boosting tax credits to reduce child poverty, the law also creates a $28.6 billion Restaurant Revitalization Fund.
With the Restaurant Revitalization Fund, restaurants, catering companies, bars, taprooms and food stands, trucks and carts and other businesses are eligible to qualify for grants. The U.S. Small Business Administration, which is tasked with overseeing the fund, is directed to prioritize awarding grants to small businesses owned by women, veterans and other “economically disadvantaged individuals.”
Those given grants from the fund can spend the money on payroll, a mortgage or rent, utilities, maintenance, supplies and more. Businesses can receive up to $10 million in total, but no more than $5 million for each physical restaurant location.
You can learn more about the specifics of the bill by referring to information from the National Restaurrant Association.
Earlier this year, prominent Hudson Valley caterer Michael Bonura was able to participate in a call with senior staff at Senate Majority Leader Chuck Schumer’s office, regarding the current status of the 2021 Unified RESTAURANTS Act. During the discussion relating to how foodservice entities would qualify for support from this bill, it was noted that the current proposal is that the funding would be offset not only by EIDL loans and PPP 1 funding, but also offset by the more recent PPP 2 funding as well.
