Bars, restaurants to receive additional $10M
Federal funding to provide checks, PPE, outdoor dining equipment to over 1K eateries
Oakland County is planning to send $10 million in checks, personal protective equipment (PPE), and outdoor dining equipment to over 1,000 restaurants that continue to struggle during the COVID-19 pandemic.
The Oakland Together Restaurant Rescue Program is being created by reallocating federal CARES Act dollars from other COVID-19 grant programs being administered by the county.
In May, the county received a total of $219 million in CARES Act dollars. Since April, the county has also received $25.8 million in federal funding from the State to support COVID-19 public health emergency-related expenses for a total of roughly $245.3 million. The CARES Act was approved by Congress on March 27, providing $150 billion in Coronavirus Relief Funds (CRF) to state, tribal, and local governments with populations of at least 500,000.
The Oakland Together Restaurant Rescue Program will provide economic support to bars and restaurants that have been impacted by pandemic in the following three areas: financial relief, weatherization upgrades for expanded capacity, and funding
to support reopening safely.
Since May, the county has created and sponsored over two dozen programs and partnerships using CARES Act dollars to support residents, schools, local governments, small businesses, cultural institutions, seniors, and veterans. Grants have been awarded to over 15,000 local businesses, 22 local chambers of commerce and non-profit organizations, and 28 school districts.
Over 1,000 restaurants will receive $7,000, on average, each in new grant dollars. The money can be used in a variety of ways including: rent, mortgage payments, payroll costs, PPE and other equipment.
On Nov. 15, Robert Gordon, director of the Michigan Department of Health and Human Services (MDHHS), issued a three-week epidemic, which among other things, prohibited indoor dining service. The order, which expires Dec. 8, mainly focused on restricting any and all opportunities for indoor social gatherings to help slow the spread of the virus.
Bars and restaurants will not need to formally apply for these new dollars, but instead will automatically receive checks in the mail.
Eligible restaurants will be those who were required to close their indoor dining services as a result of the MDHHS epidemic order and those who previously submitted grant applications under one of county’s previously sponsored COVID-19 grant programs.
Dollars must be spent by Dec. 31
Sean Carlson, deputy county executive, said it’s important that business owners are aware that the new checks must be cashed by Dec. 30, per CARES Act guidance. Despite repeated calls for an extension and flexibility of use, Congress has not adopted legislation doing so.
The dollars can only be used for COVID-19 emergency eligible expenses incurred since March 1. Any dollars not spent must be returned to the U.S. Department of Treasury.
Carlson said all of the county’s CARES Act dollars will be spent by the end of the year and that he has no concerns that dollars will be sent back to Washington.
“Every bit of this will be spent,” he said. “Any checks that aren’t cashed by Dec. 30 will be stale, drop to the bottom line, scooped up by the county, and used for eligible payroll expenses.”
He added that the county does have contingency plans in place to make sure CARES Act dollars are spent by the end of the year. This includes taking an inventory of the remaining available funding and reallocating, if necessary, to make sure the money is used as quickly as possible to cover eligible expenses.
The county has been distributing these federal dollars via direct deposit with the exception of the $11 million received in Michigan Small Business Restart Program dollars from the Michigan Economic Development Corporation (MEDC) over the summer. That money was distributed to nearly 2,900 county businesses via checks.
Carlson said around 16 of those checks are currently stale, but that the county plans to write these businesses new checks and redistribute.
Since March, the county has accrued around $58 million in eligible payroll expenses for public health and public safety personnel. To date, the county has spent $64 million in CARES Act dollars on departmental costs, which includes PPE, food, public information, and administrative support.
More funding for restaurants
In addition, the county is planning to allocate $3 million in general fund dollars to purchase items to help restaurants with expanding their outdoor dining options and to promote safe reopening efforts.
$2 million is being used by the county to purchase 8- foot by 12- foot greenhouse- type structures, electric heaters, propane heaters, propane and other items that will be distributed to local chambers of commerce and downtown development authorities, who will then distribute to local businesses in need.
The remaining $1 million will be used to purchase PPE, hand sanitation stations and computer software that bars and restaurants can use to contract trace customers who have been or may have been exposed to the COVID-19 virus.
Beginning Dec. 15, restaurants and bars owners can visit www.oakgov. com/covid to get further information as to which local organizations will be distributing the items.
The program will be open through March 31, 2021 or until 100% of the dollars are spent. Preference will be given to bars and restaurants that have not received COVID-19 grants from the county, according to Carlson.