Source: United States Senator for Virginia Tim Kaine
August 04, 2021
WASHINGTON, D.C. – Today, U.S. Senators Mark R. Warner and Tim Kaine sent a letter to Senate Leadership urging them to provide critical relief to restaurants, bars, and other small businesses in the food and beverage industries severely impacted by the pandemic. In their letter, the Senators point to the Restaurant Revitalization Fund (RRF), established by the American Rescue Plan, and the help it provided to tens of thousands of establishments across the nation before funding ran out. The Senators call on Senate Leadership to bring up legislation that provides the RRF with additional funding to meet the outstanding demand for the program. In July, the Small Business Administration announced the RRF program received over 278,000 eligible applications requesting over $72 billion in funds – exceeding the $28.6 billion included in the American Rescue Plan.
“We write to you regarding the Restaurant Revitalization Fund (RRF), which was established by the American Rescue Plan to provide critical relief to restaurants, bars, and other small businesses in the food and beverage services sector. In light of the extraordinary demand for the program, we urge you to replenish the Fund to meet the current need among eligible applicants,” wrote the Senators.
“We urge you to bring up legislation that provides the RRF with additional funding to meet the outstanding demand for the program. Virginia’s restaurants play a major role in the Commonwealth’s economy, employing over 300,000 people prior to the pandemic. Ensuring that restaurants and similar small businesses in Virginia and across the country have the resources they need to stay solvent will facilitate a speedy economic recovery,” concluded the Senators.
Senators Kaine and Warner were both co-sponsors of the bipartisan Real Economic Support That Acknowledges Unique Restaurant Assistance Needed to Survive (RESTAURANTS) Act of 2020, legislation that led to the creation of the RRF but would have included $120 billion in funding to help independent restaurants deal with the long-term structural challenges facing the industry because of COVID-19.
A copy of the letter text can be found here and below:
Dear Majority Leader Schumer and Minority Leader McConnell:
We write to you regarding the Restaurant Revitalization Fund (RRF), which was established by the American Rescue Plan to provide critical relief to restaurants, bars, and other small businesses in the food and beverage services sector. In light of the extraordinary demand for the program, we urge you to replenish the Fund to meet the current need among eligible applicants.
The food and beverage industries have been among the hardest-hit by the COVID-19 pandemic, with restaurant and food service sales down $280 billion from expected levels and restaurant jobs down 1.7 million from pre-pandemic levels. Even as restrictions are being lifted and the economy slowly rebounds, restaurants are only just beginning to recover from the devastating economic impact of the pandemic. In Virginia and across the country, restaurants continue to experience decreased sales, crippling staffing shortages, and significant debt burdens. Hundreds of Virginia restaurant owners have told us that they may have to close their doors permanently if they do not receive additional federal relief.
The $28.6 billion RRF has already started working to keep tens of thousands of these establishments across the nation open. However, demand has far outstripped the available funding. On July 2, 2021, Small Business Administration (SBA) Administrator Isabel Guzman announced the closure of the RRF program. SBA reported that they had received more than 278,000 eligible applications requesting a total of $72.2 billion in funding. As of June 30, 2021, approximately 101,000 of those applications had been approved.
We urge you to bring up legislation that provides the RRF with additional funding to meet the outstanding demand for the program. Virginia’s restaurants play a major role in the Commonwealth’s economy, employing over 300,000 people prior to the pandemic. Ensuring that restaurants and similar small businesses in Virginia and across the country have the resources they need to stay solvent will facilitate a speedy economic recovery.
Thank you in advance for your attention to this urgent matter.
Sincerely,
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