Bars, restaurants miss out on stimulus package

The $900 billion U.S. stimulus package doesn’t allocate direct funding for restaurants and bars, another blow to two of the hardest-hit parts of the U.S. economy.

The wide-ranging spending bill does allow small businesses to take out loans. It also directly funds several beleaguered industries but doesn’t include restaurants and bars. With more states restricting indoor activities, these establishments are already facing a bleak future.

“Independent restaurants and bars will continue to close without additional relief this winter, leaving millions more out of work,” the Independent Restaurant Coalition said in a statement.

Those industries have been decimated by the pandemic that continues to rage across America. Bankruptcies and closures are surging. And while revenue has recovered somewhat from its lowin April, sit-down eateries are still struggling. These declines have also hurt suppliers, including beer and spirits providers.

Democrats in theHouse passed the Restaurants Act earlier this year that would have provided $120 billion in direct funding, but theRepublican-controlled Senate declined to takeupthe legislation. Meanwhile, the stimulus set aside about $15 billion each for the airlineandentertainment industries.

Despite the lack of a bailout, the stimulus proved to be “a hard fought victory” that provides the sector an“element ofhope” enteringthenewyear, accordingtoSean Kennedy, executive vice president of public affairs for the National Restaurant Association.

“Is this a long-term solution? No,” Kennedy said. “We’re just looking to survive the next three months.”

Restaurants and bars, along with other small businesses, can apply for aid from the Paycheck Protection Program, the vehicle created by the first stimulus earlier this year.