(WETM-TV) – Senate Majority Leader Chuck Schumer announces a bipartisan restaurant relief plan.
The Majority Leader explained that the restaurant grant assistance he wants to be included in the next COVID relief bill would be administrated by the Small Business Administration (SBA).
The plan would provide comprehensive support to local restaurants.
Grants from the fund could be used alongside first and second Paycheck Protection Program (PPP) loans, SBA Economic Injury Disaster Loan assistance, and the Employee Retention Tax Credit.
In a release, the New York State Restaurant Association said 54% – of New York restaurants said they likely would not survive the next six months without federal relief.
“Thousands of beloved restaurants and bars have permanently shuttered and countless more are teetering on the edge of survival. Our eating and drinking spots have shed over 140,000 jobs and many New Yorkers still working in the industry are underemployed. That’s why we’re proud and grateful to stand with New York’s own Senator Schumer, who is fighting hard with us to enact dedicated and structured financial support to save restaurants and jobs in the five boroughs, and around our country,” said Andrew Rigie, Executive Director, NYC Hospitality Alliance.
More details on Senator Schumer’s new restaurant relief fund appear below:
Grant Maximum – $10 million per restaurant group, $5 million per individual restaurant
Eligible Expenses – Payroll and benefits, mortgage, rent, utilities, maintenance, supplies including protective equipment and cleaning materials, food, operational expenses, covered supplier costs as defined by the SBA under the PPP program, sick leave, and any other expenses deemed essential by the Administrator.
Covered Period – Grants can be spent on eligible expenses from 2/15/20 through 12/31/21 and the Administrator may extend the period through two years from enactment if conditions warrant.
Set-Asides – $5 billion of the $25 billion total is reserved for restaurants with less than $500,000 in gross receipts in 2019 for the first 60 days of the program. During the initial 21-day period, the administrator will prioritize awarding grants to eligible entities that are owned or controlled by women or Veterans or are socially and economically disadvantaged businesses.