Local restaurants that followed COVID protocols to share $1.5M
Help is on the way for Rockford-area restaurants that have been struggling to pay skyrocketing unemployment insurance rates since the pandemic forced scores of layoffs four years ago.
The Rockford Area Convention & Visitors Bureau and State Rep. Maurice West, D-Rockford, announced at a press conference Monday that they've finalized plans to distribute a $1.5 million grant to help local restaurants that followed COVID protocols and are now underwater with the Illinois Department of Employment Security.
“Restaurants were hit hard,” West said. “And, unfortunately, the impact of the pandemic has continued to follow them because they followed the rules. State-mandated closures and restrictions, plus skyrocketing unemployment insurance costs, have squeezed our restaurants.”
The grant comes almost two years after West unsuccessfully filed a bill in the House, hoping to pass legislation to help local restaurant owners, many of whom say they feel punished for following state orders to close during the pandemic, only to be hit with massive unemployment
Josh Binning, from left, owner of Lucha Cantina, Emily Christensen, owner of The Norwegian, and John Groh, CEO of the Rockford Area Convention & Visitors Bureau, post for a photo on Monday during a news conference in downtown Rockford.
insurance increases.
“After COVID, we were assigned the highest possible unemployment tax rate,” said Emily Christensen, owner of The Norwegian Nordic restaurant. “We went from the lowest to the highest.”
The grant will not lower unemployment insurance rates, but will help restaurant owners offset some expenses they incurred during the pandemic, most notably the first quarter of 2021.
The state did freeze unemployment rates through the fourth quarter of 2020 to give restaurants room to breathe as coronavirus moved through state. But because indoor dining didn't fully return until well into the following year, owners struggled to pay increases and penalties that kicked in during the first quarter of 2021.
“We've paid about $80,000 to the Department of Employment Security since COVID,” Christensen said. “I took out personal loans to pay for my unemployment taxes.”
Winnebago County restaurants can apply for grant funds at gorockford.com. To qualify, they must certify that they complied with indoor dining closure mandates during the first quarter of 2021 that were set forth by five executive orders issues by Gov. J.B. Pritzker.
Restaurants must also show that they've incurred or will incur a higher unemployment rate in 2022, 2023 and 2024 because of rate increases in Q1 2021.
Applications must be completed by 5 p.m. March 28. Each application will be reviewed by the Rockford Area Convention & Visitors Bureau and a review panel of Rockford-area finance professionals.
deemed “essential” have to stop work. Thousands of federal employees would be furloughed.
“Essential” federal workers, who range from air traffic controllers to emergency personnel in national parks, would work without pay, then receive back pay once a shutdown ends. Some subcontractors could be out of work and would not receive back pay.
A shutdown can also have significant impacts on other Americans. For example, some food assistance benefits could be delayed, including WIC, and certain food safety inspections, federal housing loan support and veterans programs could be paused.
The 12 appropriations bills that keep the government functioning for the next year are due at the end of September.
House Speaker Mike Johnson, R-La., has tried to navigate the funding fight ever since he got the job. Under his leadership, lawmakers extended funding again in November and January.
Ultraconservative House lawmakers are putting Johnson under immense pressure to deliver a government funding bill with GOP policy priorities attached, ranging from abortion restrictions to food assistance cuts. Those proposals are a no-go with Democrats. Senate Republicans, too, largely support funding the government without the policy add-ons.
Some hard-right members are arguing they should threaten a shutdown to get what they’re asking for – a position that’s unpopular with most voters.
If they can’t get policy wins, hardright members want an extension until the end of September. But that would institute across-the-board 1% spending cuts that Democrats and moderate Republicans oppose.
Both sides say the other is holding up the process.
At any time, lawmakers could announce an agreement on the first four bills. Adhering to a promise to allow House members to review any legislation for 72 hours, the House could vote as early as Friday morning.
If the bills moved that quickly, the Senate would then vote on the bills Saturday morning, creating a shutdown of only a few early-morning hours with little interruption in services.
If lawmakers can’t reach a deal, leaders may need to explore other options. Ultraconservative leaders would push for a full-year extension. Most say another short-term bill is more likely.