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After more than two years of the start of the covid pandemic-19, when thousands of restaurants had to close their doors and then implement capacity restrictions, many independent establishments are still at risk of going bankrupt.
Federal aid programs that provide relief in the form of grants and loans have shown they have not been enough to keep business afloat in an industry which was already known for its slim profit margins.
The Restaurant Revitalization Fund (RRF) of $28,300 million dollars, which was part of the American Rescue Plan, has encouraged applicants who managed to receive funds.
However, according to a survey of Independent Restaurant Coalition (IRC) although almost 300,000 restaurants and bars applied for grants from RRF in 2021, only one in three applicants received help.
Those who did not receive aid paint a bleak picture, according to the survey by IRC, an organization made up of independent chefs and restaurant owners.
“ After two years of late rent payments, vendors and utilities, navigating astronomical food costs and multiple covid surges-19 that paralyzed businesses, independent restaurants and bars have no time, options or money“, said Erika Polmar, executive director of the IRC in a statement.
According to the poll, more than half, the 52%, of independent restaurants and bars that did not receive RRF grants anticipate that they will have to close within the next six months.
Those who did not receive grants say they are in greater danger of defaulting on loans, having to file for bankruptcy, or being evicted by landlords.
“Nearly 200,000 of these neighborhood businesses have been waiting for over a year for Congress to provide the relief they desperately need,” Polmar said.
The IRC and restaurateurs across the country hope the Affected Small Businesses and Restaurants Relief Act, passed in the House last week, will also pass the Senate and appropriate $42,02 millions additional to RRF.
“The relief of this legislation will allow restaurants and bars to pay off the mountains of debt they have accumulated, continue to keep their workers employed and serve their communities for years to come.”
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