Source: United States Senator for Rhode Island Jack Reed
CRANSTON, RI – As Rhode Island’s world-renowned culinary sector vies to regain its financial footing coming out of the pandemic, U.S. Senator Jack Reed is seeking to deliver a second round of federal aid to local, independently-owned establishments that serve as neighborhood gathering places and help draw business to Main Streets nationwide.
Citing the fact that restaurants have been among the hardest-hit businesses during the COVID-19 pandemic, Senator Reed today joined local restaurant operators and the hospitality industry to call for the replenishment of the federal Restaurant Revitalization Fund (RRF). Senator Reed helped create the program and worked on a bipartisan basis to deliver $28.6 billion in federal funding last spring under the American Rescue Plan Act to provide financial support to restaurants nationwide struggling with the impacts of the COVID-19 pandemic. If Congress allocates additional funding to the program, more local restaurants will be able to rehire or retain their current staffs and cover pandemic-related losses.
The Restaurant Revitalization Fund provides grants to restaurants and other qualifying food and beverage industry businesses, including breweries, caterers, bakeries, and food trucks. Eligible expenses include payroll, mortgage and rent payments, business debt service, utilities, maintenance, outdoor seating, business supplies, food and beverage costs, certain supplier costs, and operating expenses.
A total of 446 Rhode Island restaurant operators received over $106 million in RRF aid, with 129 located in Providence. According to the U.S. Small Business Administration (SBA), the average RRF grant in Rhode Island was $283,642. More than 1,500 Rhode Island RRF applications were submitted to SBA but went unfunded.
“Rhode Island’s restaurants, bars, and eateries are economic force multipliers that create jobs, add vibrancy to neighborhoods, and serve as cornerstones of our communities. Demand for Restaurant Revitalization Fund assistance drastically outpaced the $28.6 billion in approved federal funding, so I am working on a bipartisan basis to deliver additional aid,” said Senator Reed, who notes that local restaurants played a key role in protecting public health during the height of the pandemic and the brick and mortar health of neighborhood restaurants and bars is critical to communities. “Even as the pandemic eases, restaurateurs are being challenged in new ways and this federal funding will save jobs, strengthen Main Streets across the country, and offer a respite from inflation and higher food costs.”
In addition to being limited by the number of customers who were able to dine indoors, the pandemic has also impacted restaurants due to staffing shortages and supply chain issues that have contributed to spikes in food prices.
Senator Reed is working with U.S. Senators Ben Cardin (D-MD), Roger Wicker (R-MS) and others on bipartisan legislation that would enable SBA to fund the eligible restaurants that applied but did not receive RRF funding because of the shortfall.
“Thank you, Senator Reed, for your leadership on replenishing RRF. This program was a lifeline for businesses in need, but unfortunately due to limited funding, just under 23 percent of Rhode Island restaurants got the help they so desperately needed. The restaurant industry is still struggling to recover and replenishing the RRF will help provide stability for some of the hardest hit restaurants,” said Dale Venturini, President and CEO of the Rhode Island Hospitality Association.
According to SBA statistics, nationwide, more than 278,000 applications were submitted for the program nationwide totaling over $72.2 billion in RRF fund requests, and many qualified restaurants and beverage establishments in need of assistance were unable to get help. In Rhode Island, only about 23 percent of applicants received RRF assistance.
According to the National Restaurant Association (NRA), the restaurant industry has yet to fully recover the more than 650,000 jobs lost early in the pandemic. Last month, an NRA survey found that the omicron variant hit the industry particularly hard, with 88 percent of restaurants experiencing a decline in demand for indoor dining during the coldest months of the year. The January 2022 survey also found that 76 percent of restaurants reported conditions had worsened and 74 percent reported lower profits in comparison to pre-pandemic levels.
The largest RRF award in Rhode Island ($2,993,439) went to Wright’s Farm, which normally can seat up to 1,200 diners at its iconic location in Burrillville, and the smallest grant ($1,594) went to Kellie’s Café.
In addition to the $106 million in RRF aid, Senator Reed has also led efforts to assist Rhode Island small businesses by providing nearly $4 billion for the state through the Paycheck Protection Program (PPP); Economic Injury Disaster Loans (EIDL); and the Shuttered Venue Operators Grant (SVOG).
On top of this small business aid, Senator Reed played a lead role in authoring two separate State and Local aid provisions of the CARES Act ($1.25 billion) and American Rescue Plan ($1.67 billion) to boost Rhode Island’s economy and help build a brighter and healthier future by making strategic investments to help Rhode Island residents, businesses, and nonprofits.