As our nation continues to recover from the setbacks experienced due to the spread of COVID-19 and government-backed closure mandates, the business community has looked towards our leadership to provide relief from the severe economic downturn. Recently, the federal government enacted funding to help small businesses recover from the pandemic’s financial toll.
As the leaders of various economic sectors attempt to rebuild from the impacts of sudden revenue decline experienced in the last year, several specific measures have been taken to assist certain industries that have been particularly affected.
Here we will outline some of the assistance now available to businesses that have experienced hardship due to the pandemic.
The Restaurant Revitalization Fund
The Restaurant Revitalization Fund was created to assist the severely affected restaurant industry. Due to the threat of viral spread, many restaurants needed to close to protect the health and safety of the citizens they serve. This was economically devastating and caused widespread financial losses leading to permanent closures and significant setbacks to any restaurants that managed to weather the storm. Aid package details include:
- Eligibility determinations made by the subtraction of 2020 gross receipts from 2019 gross receipts.
- If not in operation for the entirety of 2019, the difference is determined to be 12 times the average monthly gross receipts available from 2019 and the average monthly gross receipts received in 2020 (SBA Formula).
- If not in operation until 2020, grants are awarded in the amount equal to “eligible expenses” subtracted by gross receipts received in total (SBA Formula).
- If not in operation as of the application date for the grant but has “eligible expenses,” assistance would be equal to the aforementioned expenses (SBA Formula).
- Pandemic-related revenue loss for a company is reduced by any amount received from the Paycheck Protection Program (PPP) for either the First Draw or Second Draw in 2020/2021.
The Small Business Association (SBA) can also make adjustments to awards dependent on current demand and “relative local costs” in markets where the RRF is applicable.
Other important aspects of the Restaurant Revitalization Fund are:
- A 21-Day initial period where small businesses are given priority for grant awards.
- Expenses must have occurred between February 15, 2020, to December 31, 2021.
- Awarded grants must be used on payroll, mortgage obligations, utilities, building maintenance, rent, construction to accommodate outdoor patronage, PPE, cleaning supplies, food and drink inventories, supplier costs, operating expenses, paid sick days, and all other expenses deemed essential to maintaining operations during the pandemic.
To learn more about eligibility requirements and other important information regarding the Restaurant Revitalization Fund, please visit the Restaurants Act website.
The American Rescue Plan Act of 2021
Along with the funding now available through the Restaurant Revitalization Fund, the American Rescue Plan Act of 2021 offers additional support to businesses suffering due to the pandemic. The American Rescue Act of 2021 is a broad effort to stem the losses sustained by the country as a whole. Some of the significant components of this initiative include:
- Aid to State and Local Governments: $360 billion to assist state, local, tribal, and territorial governments pay for expenses tied to the pandemic, including cleaning supplies and PPE equipment.
- Funds allocated to Educational Institutions: $176 billion to help the education sector.
- Grants to the Transportation sector which include money intended for transit agencies to maintain payroll and purchase personal protective equipment (PPE) for employees.
There are also several provisions within the Act that provide for workplace safety initiatives that include $150 million to the Department of Labor for worker protection concerning COVID-19. Additionally, direct payments and tax provisions provide relief on an individual basis for all those impacted by events surrounding the pandemic.
For more information regarding the American Rescue Plan Act of 2021, please visit the White House website.
Further efforts are underway to provide more relief to institutions and businesses in an effort to assist them in opening safely. Provisions set forth in the HEALS Act would grant funding for efforts to maintain a clean and protected environment business environment. Officials in all branches of our government have pledged to do what is necessary to help the American people and the business community.
Pandemic Preparedness and Recovery with Imperial Dade
Imperial Dade is more than just a distribution company. We specialize in providing our clients with the products and services they need to keep the workplace clean and safe. We will continue to be a leading source of the supplies necessary to keep your company running. From our selection of cleaning products to janitorial supplies, Imperial Dade offers a wide range of products and consultative services that help our clients including restaurants, educational facilities, and retail stores navigate the realities of doing business in the age of COVID-19.
For more information about Imperial Dade or to speak to one of our representatives, contact us today.