Dade had $5 million in federal aid for restaurant workers. It couldn’t give the money away

Miami-Dade County set aside $5 million in federal aid for restaurant workers affected by coronavirus shutdowns. It managed to give away just a fraction of that.

The Hospitality Industry Relief Grant was one of two funds the county carved out of $474 million it received in federal COVID relief from the CARES Act. But Florida International University, which agreed to vet the applicants, returned nearly all of the money after it said it did not receive enough applications.

Of $5 million dollars, it managed to give away $1,022,000, an FIU representative said.

“FIU was not receiving the request for assistance as they anticipated,” Gary Hartfield, director of the county’s small business development, wrote the Miami Herald in an email.

The grant offered $500 to employees who had been affected by restaurant shutdowns. It was intended to help as many as 10,000 of Greater Miami’s estimated 79,000 workers in food and beverage, according to the U.S. Bureau of Labor Statistics.

But there were strings attached.

To get the money, restaurant owners had to fill out extensive paperwork for these laid-off employees, including proof their business had fewer than 50 employees, made less than $10 million in revenue, showed two years’ worth of business tax receipts, and that at least half of the owners lived in the county.

Also, the grant money would be taxed like income.

“The difficulty of it — it is what it is. Those are federal dollars and we have to be accountable for all of it,” Hartfield said.

Ultimately, restaurants were allowed to reopen less than two weeks after FIU started taking applications for the grants. And, Hartfield said, he was told employers told their workers they would easily make up the $500 (minus taxes) in tips.

FIU’s applications for the grant dropped to “just one or two a week,” said Maydel Santana, an FIU vice president and spokeswoman.

“Based on the drop in demand, we suggested that the county may be able to repurpose the remaining funds in ways that can better serve the community,” she wrote the Herald.

The county chose to work with FIU to distribute the money after the university showed it could do it effectively. Earlier this year, FIU and the South Beach Wine & Food Festival partnered to start their own private fund and gave away $1.4 million in grants — with fewer restrictions.

Meanwhile, a larger, $30 million grant aimed at helping the restaurant owners has been able to give away most of its funds.

The Restaurant Relief Fund, administered by the county’s small business division, has given out or plans to distribute $19.4 million to 774 businesses. It expects to give out the remaining $10.6 million to Miami-Dade-based franchises that do not have restaurants outside of the state of Florida, Hartfield said. The fund reimburses restaurants for personal protection equipment, up to 80% of rent and 50% for food and utilities.