President Biden signs the 1.9 trillion dollar American Rescue Act, a sweeping bill that includes 28.6 billion dollars in assistance to bars and restaurants.
Louisiana Restaurant Association President Stan Harris said after a tough 2020 the Restaurant Revitalization Fund is a welcome relief.
“This is an absolutely great start, it’s broad-based, and this is a grant they are not going to have to repay if they use for the wrong things,” said Harris.
National reports show a 17 percent drop in operating restaurants when comparing the end of 2020 to 2019 and a 16 percent drop in industrywide revenue.
Harris said the fund covers a broad array of food service, bars, taprooms, and even food trucks. Restaurants can receive up to five million dollars in aid per location to a max of ten million per company.
“They can use it on payroll, principle or interest on mortgage obligations, rent, utilities, maintenance, PPE, cleaning materials, inventory, paid sick leave,” said Harris.
The amount any one business can receive is based on total lost revenue from February of last year through the end of 2021 minus the amount of PPP aid they may have already received. Priority will be given to smaller establishments and a five billion dollar portion of the fund has been set aside for entities that generated 500,000 dollars or less in revenue last year.
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