Restaurants could receive relief grants of up to $5 million each from the federal government under the draft of President Biden’s COVID aid bill currently being considered within the House of Representatives.
Documents from the House Small Business Community show that $25 billion would be earmarked specifically for restaurants under the $1.9 trillion package, which is likely to change considerably even before it leaves the House for consideration in the Senate.
The Restaurant Relief Fund would be distributed in grants ranging as high as $5 million per restaurant, or up to $10 million in total for multi-unit operations. No more than 20 locations per company would be eligible for the aid.
The amounts would be determined by subtracting an applicant restaurant’s 2020 sales from its 2019 revenues, with the aim of compensating the operations for what they lost because of the pandemic.
The money could be used for a wide variety of purposes, including the purchase of food and beverage supplies and other routine operating expenses.
The allocation process would be tweaked to provide the most immediate aid to operators deemed most in need. Those parties are defined by the current provisions as women, veterans and “socially or economically disadvantaged individuals,” according to the portion of the bill currently being considered by the House Small Business Committee.
Applications from those parties would be a priority during the first 21 days of the program, according to the text. The measure did not say when the program would begin.
Restaurants with less than $500,000 in 2019 revenues would also get a dash of special treatment. About $5 billion of the $25 billion would be reserved for operations of that size…