Help on the way
Grant program in latest federal bill to start in three weeks
Grant program to help restaurants to start in three weeks.
Senate Majority Leader Charles E. Schumer, D-N.Y., said Tuesday a $28.6 billion grant program Congress created to boost struggling restaurants will start serving clients in about three weeks.
“What’s on the menu at Russo’s and so many other restaurants around our state?” asked Schumer, standing outside Russo’s Bar and Grill in Amsterdam. “Relief.”
That was welcome news for owner Mike Russo, who said his restaurant barely hung on despite receiving a Paycheck Protection Program loan that helped sustain the business and its 16 employees.
“It’s been a long year,” Russo said. “We didn’t make any money during the first months of the pandemic. We just stayed open to keep our employees on.”
Throughout the country, food service and hospitality businesses have been among the hardest hit by the pandemic as people were forced to stay home, and businesses closed to the public. Across a region that includes New York state, northern New Jersey and Fairfield County, Conn., leisure and hospitality businesses like restaurants, bars and hotels lost the most jobs — more than 750,000 — from February to April 2020, the Federal Reserve Bank of New York reported. About 50 percent of those jobs had returned as of October.
In mid-march, restaurants in New York were able to start operating at 75 percent capacity, up from 50 percent.
Soon, restaurants like Russo’s will be able to apply for more aid from the U.S. Small Business Administration, which will administer the Restaurant Revitalization Fund, offering grants of up to $5 million to restaurants across the country. That is a shift for the SBA, which typically offers only loans, not grants.
According to the National Restaurant Association, the grants will be calculated by subtracting a restaurant’s 2020 gross receipts from their 2019 gross receipts. The SBA did not respond to an inquiry about the restaurant program, details of which the agency is still finalizing.
The SBA will deduct the value of any PPP loans a restaurant previously received from the value of the relief grant, according to multiple sources. Restaurants can use the money to pay for payroll, mortgages or rent, utilities, supplies like food and cleaning materials, sick leave for employees and personal protective equipment.
Companies that own more than 20 restaurants or are publicly traded cannot apply. But food trucks, caterers, bars, brew pubs and tasting rooms can get the money.
Another SBA relief program to aid theaters and arts venues will begin offering grants Thursday. Some $16.25 billion is available to distribute to museums, concert halls, zoos, movie theaters and talent agencies. Grants will be 45 percent of an operator’s 2016 gross revenue. As with the restaurant relief program, previously obtained PPP loans will be deducted from the grants.
“The SBA knows these venues are critical to America’s economy and understands how hard they’ve been impacted, as they were among the first to shutter,” SBA administrator Isabella Casillas Guzman said.
At the news conference with Schumer were Rep. Paul Tonko, D-amsterdam, Amsterdam Mayor Michael Cinquanti and Bob Purtell, a Montgomery County legislator.