The hospitality industry is filled with small businesses who often employ a handful of people and are important to their communities, offering high-profile and well-known locations for people to gather and rally around.
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On April 19, the U.S. Small Business Administration announced the implementation of the latest federal stimulus to help an important sector survive and recover from the coronavirus pandemic: the $29-billion Restaurant Revitalization Fund. The program came as part of March’s American Rescue Plan, the third major federal bailout plan since the pandemic began, whose $1.9-trillion worth of programs are designed to kick the economy in high gear after more than a year of loss and stagnation.
While it’s too soon to tell how the Restaurant Revitalization Fund will impact the hospitality industry in Central Mass., this program could not be more welcome to an industry still ravaged by the regulations meant to slow the spread of COVID-19, particularly those limiting capacity and operating hours. Much like the $669-billion Paycheck Protection Program from the SBA, which helped businesses of all kinds with forgivable loans when uncertainty was ravaging the global economy, this new specific effort will help an industry important to the community.
The Massachusetts Restaurant Association has no idea how much of the $29 billion the state’s restaurants will receive from the new program, but much like with the PPP loans, President & CEO Bob Luz expects the demand will be high. Luz said anyone who is eligible will apply, as the restaurant industry still remains near the back of the pack among those in recovery from the pandemic. Demand will be so high, Luz expects the federal government will have to create a second round of funding, as was the case with PPP.
Unlike the first two federal government bailout packages, which passed with bipartisan support, the American Rescue Plan faced unanimous opposition from Republicans in Congress, some of whom balked at the high price when parts of the national economy were already in recovery. Yes, the price tag is high, but this round of funding is vitally important to making the economy whole again, particularly restaurants. The hospitality industry is filled with small businesses who often employ a handful of people and are important to their communities, offering high-profile and well-known locations for people to gather and rally around. Restaurants often are the first businesses providing a path to ownership for immigrants. As an SBA-administered program similar to the PPP effort, there will again be a critical role played by our local and regional banks in working with restaurant owners to help secure these needed funds. Central Mass. is a series of tightly knit communities, and every restaurant owner qualifying for this new federal program should receive any necessary help in applying.
Central Mass. has increasingly become known as a region full of great restaurants. Making sure restaurants make it to the other side of this pandemic will be critical for our community, and our economy.
