The U.S. Small Business Administration (SBA) days ago shut down the Restaurant Revitalization Fund for pandemic-beleaguered businesses, but a Democrat New Mexico U.S. Senator and other lawmakers are trying to add tens of billions to the fund.
"As New Mexicans, we know the value of good food and good company - it's why our local restaurants are such anchors in our community," U.S. Sen. Martin Heinrich said in a press release issued June 24. "That's why I'm dedicated to securing additional relief so that our smallest, locally-owned food trucks, bars and restaurants keep their doors open and their employees on payroll."
Democrat New Mexico U.S. Sen. Martin Heinrich
| heinrich.senate.gov
Heinrich is a co-sponsor of the Restaurant Revitalization Fund Replenishment Act of 2021, to add $60 billion to the now depleted fund. Other co-sponsors are U.S. Senators Kyrsten Sinema (D-Arizona) and Roger Wicker (R-Mississippi) and U.S. Representatives Earl Blumenauer (D-Oregon) and Brian Fitzpatrick (R-Pennsylvania).
The legislation, which has the support of the support of the New Mexico Restaurant Association, was introduced well before the SBA sent out an email to fund applicants earlier this week, according to a July 1 news story by Restaurant Business and other industry publications.
The SBA told applicants that they await any actions by Congress to allocate additional funds and promised to process requests as Congress acts, but that the program will be “disabled” on July 14.
The grants provided up to $10 million to 105,000 restaurant owners before the program’s $28.6 ran out, leaving 265,000 applications unfulfilled.
The SBA is administering the Restaurant Revitalization Fund to provide emergency assistance for eligible restaurants, bars and other qualifying businesses that had been negatively impacted by the still-ongoing pandemic. The fund was established under the Biden administration's "American Rescue Plan," providing up to $10 million per business and no more than $5 million per physical location.
Fund recipients are not required to repay the funding as long as they use the funds by March 11, 2023.
Fund recipients "can use the funding for payroll, benefits, mortgages, rent, utilities, maintenance, supplies, protective equipment, cleaning materials, food, paid sick leave, and any other expenses deemed essential," Heinrich said in his press release.
With hundreds of thousands still needing funds, the pressure is on to pass the Restaurant Revitalization Fund Replenishment Act.
"There is a great deal of enthusiasm for the legislation," Blumenauer said in a news story published by The Business Journals on June 30. "Everybody is pulling in the same direction, and I am cautiously optimistic that we may be able to do it this summer."
Blumenauer also reminded The Business Journals that Congress rarely passes stand-alone legislation, so he plans to attach the Restaurant Revitalization Fund Replenishment Act to one must-pass or another, or to bipartisan legislation that will be considered later this year.
"We are working on the legislative proposal so that we are flexible," Blumenauer said. "If there is a recovery bill or a budget bill that looks like it's going to get floor time in the House or the Senate, we will be there."