Two U.S. congressmen have unveiled new legislation to provide financial relief to restaurants hit hard by the COVID-19 pandemic.
The new Real Economic Support That Acknowledges Unique Restaurant Assistance Needed to Survive (RESTAURANTS) Act of 2020 would establish a USD 120 billion (EUR 107 billion) revitalization fund to help independent restaurants deal with the long-term structural challenges facing the industry caused by the COVID-19 pandemic. It would also support the reemployment of 11 million workers, the Independent Restaurant Coalition said in a press release.
The legislation was introduced by U.S. Rep. Earl Blumenauer (D-Oregon) and U.S. Sen. Roger Wicker (R-Mississippi).
The restaurant industry is in dire need of help, as around 5.9 million restaurant jobs – an estimated 4.5 million of which are from independent restaurants – have vanished from the industry within a matter of weeks, IRC said.
“That is the most of any industry and nearly double the figure from the next most affected industry,” the IRC said in a statement provided to SeafoodSource. "The need for relief for independent restaurants cannot be overstated in a time of so much uncertainty. Independent restaurants that had limited openings are now closing again. Many still wait for Paycheck Protection Program loans and are accumulating more and more debt in the process. This is about more than preserving our most cherished places of celebration and gathering – it’s about bringing a massive economy of over 16 million workers and billions of dollars in spending back to life.”
The IRC noted the window for applying for funds from the Paycheck Protection Program (PPP), established by the CARES Act in March, is set to close on 30 June.
“More people in Congress are realizing that, while the Paycheck Protection Program has been successful, it hasn’t hit the mark with restaurants,” Wicker said on an IRC press call announcing the legislation. “If restaurants across our country are allowed to fail, it will be a cascading effect on our economy. The time is fast approaching for action needed.”
The PPP is a “six-month solution to an 18-month problem,” Robert St. John, owner of the Purple Parrot Cafe and other restaurants in Hattiesburg, Mississippi, said on the press call.
“The restaurant business relies on social gathering, more than most businesses. We have been the hardest hit,” St. John said. “[This bill] is going to allow us to keep our restaurants open, while we are at this 50 percent seating capacity … and allow us to add outdoor seating.”
Millions of jobs – including those of U.S. fishermen and other seafood industry employees – are supported by the restaurant industry, St. John added.
A report released last week by Compass Lexecon, a global economic consulting firm, projects dedicated relief for independent restaurants could inject up to USD 271 billion (EUR 242 billion) into the economy and reduce nationwide unemployment by 2.4 percent. The same report finds 85 percent of independent restaurants could close by the end of this year if Congress does not provide direct aid.
Wicker said support for the legislation “goes all the way up to the White House.” There is a “strong likelihood” that the RESTAURANTS Act will be part of Congress’s overall coronavirus relief package, which will be taken up by Congress in mid to late July, according to Wicker.
Photos courtesy of Wikimedia Commons
