Relief gives local restaurants a fighting chance

After bruising year, CARES Act begins to offer glimpse of future stability for struggling industry

More than a year ago, on March 16, as the lights went dim in dining rooms, cafes and coffee houses, I joined several other restaurant owners in a friend’s empty eatery. All eyes were focused on a TV while we waited for guidance from the president at a White House Coronavirus Task Force press briefing. President Trump told Americans to avoid eating and drinking at bars, restaurants and public food courts; avoid gathering in groups of more than 10 people; and avoid discretionary travel but, he offered no plan or relief to businesses being shut down.

Essentially, it was the referee blowing the whistle and clearing restaurants from the field with no commitment to assist our industry. The president had previously declared federal emergencies for hurricanes which had allowed businesses to file insurance claims for “business interruptions,” but not this time.

Restaurants were left on the sidelines, through no fault of our own, while governors competed to balance the public health threats, politics and the sputtering economy due to COVID-19. Our hospitality industry was sacked by the pandemic. Since then, we have petitioned and advised every level of government that the proposed CARES Act was insufficient and warned of the dire consequences if further delayed.

The National Restaurant Association estimates that more than 110,000 restaurants and bars in the United States closed or temporarily went out of business last year. More than 500,000 remain in an economic free-fall. More than 11 million employees and 5 million food supply chain workers have been impacted, according to the Independent Restaurant Coalition.

Like many, my family’s restaurant has managed to barely squeak by with support from loyal customers and a dedicated staff. Those who succeed in our industry must master an array of life skills, and pandemic required new survival skills: grant processes, arbitration, business model innovation, and interpretation of changing health department COVID-19 regulations, while keeping our smiles on behind our masks during curbside pick-up and delivery.

As more Virginians are vaccinated and our economy gradually improves, restaurants continue to struggle. That’s why the American Rescue Plan is such a crucial lifeline. President Joe Biden said, “help is on the way,” and he delivered. His plan includes $28.6 billion in grants for restaurants whose revenue fell in 2020 as a result of the pandemic. These grants prioritize independent restaurants and small chains and they set aside $5 billion for the smallest restaurants with annual revenue less than $500,000.

This plan also puts another

$7.25 billion into the Paycheck Protection Program which is above what was allocated in the

December COVID-19 relief bill. Hopefully, with over 7 million Virginians scheduled to receive the $1,400 stimulus checks more customers will be able to dine out and travel.

With such promising news, it’s incredibly frustrating to hear critics say that it’s wasteful spending or to simply advise opening up the economy. If only the solution was that easy.

Restaurants are cornerstones of our communities. We gather there with family and friends and nurture vital community-building relationships. Eateries boost surrounding small businesses and help create economically secure and resilient neighborhoods.

This pandemic has informed our government at all levels of the contributions that small businesses make to our overall economy and quality of life.

Our government works best when our leaders work together. The federal leadership of the Biden administration along with congressional actions by Sens. Mark Warner and Tim Kaine and Reps. Bobby Scott, Gerry Connolly, Don Beyer, Don McEachin, Elaine Luria, Abigail

Spanberger and Jennifer Wexton have finally given us a plan. Their work has allowed Gov. Ralph Northam to provide the additional assistance we’ve been waiting for.

This pandemic provoked innovative thinking by local leaders. Virginia Beach’s Commissioner of the Revenue Phil Kellam worked with the Virginia Beach City Council to temporarily waive the meals tax on our customers, and to suspend fees for businesses required to maintain Virginia ABC licenses for 2021.

COVID-19 has compounded a complicated and fast evolving world, and I’m confident we will meet these challenges as we emerge into the new post-pandemic realities.

The American Rescue Plan is proof that we can work together. I’m grateful for the American people and the hope we now have.