$28.6 billion aid targeted for restaurant industry in Biden’s stimulus package

The pandemic struck restaurant industry in the United States is rejoicing as President Biden signs the $1.9 trillion on Thursday. 

$28.6 billion aid is earmarked for eateries in the rescue plan. 

The Restaurant Revitalization Fund has been established by the relief package acting as a lifeline for the food industry. 

Also Read: Why did Biden sign the stimulus bill a day earlier?

National Restaurant Association president, Tom Bene said in a statement, “The creation of the Restaurant Revitalization Fund will be a catalyst to reviving restaurants and saving jobs across the country,” reports AFP. 

The fund was first pushed last year when revenues dropped dramatically during the peak of the COVID-19 pandemic.  

According to the restaurant association, foodservice sales have dropped by $255 billion and about 110,000 restaurants have shut down. 

Also Read: US President Joe Biden signs landmark COVID-19 relief bill into law

The previous Paycheck Protection Program provided the much needed forgivable loans which were utilised by hundreds of restaurants in paying rent, salaries and other expenses. 

But restaurants had been pushing for a dedicated support program given the bruising impact of COVID-19 on the industry, which caused many to take on huge debts to survive.

According to the provisions of the new fund, a business can apply for a grant equivalent to the annual revenue loss from 2019 and 2020. Expenses included in this would be rent, debt, payroll, protective equipment, debt obligations to suppliers, and outdoor seating construction. 

The bill has been cheered by the Independent Restaurant Coalition chefs. 

Chefs with the Independent Restaurant Coalition, which was formed in March 2020 as the COVID-19 crisis slammed the industry, also cheered the bill.

Caroline Styne, Los Angeles restauranteur said, “This is more than a rescue plan. It is more than a relief package, it is literally a stimulus package that will really have an effect on the entire country’s economy.” 

“This package will be the vehicle for so many small businesses, bars, and restaurants to survive: everywhere from down south in San Diego, to San Francisco, to Sacramento, and everywhere in between. It will help those who have been unemployed for almost a year now back to their jobs,” she added. 

The Independent Restaurant Coalition was formed in March 2020 when the COVID-19 crisis hit the restaurant industry.