Food & Beverage

Relief is at hand: Legislators OK $900B COVID-era relief package

Legislators have singed a $900 billion deal to provide pandemic-era relief to individuals and businesses, including restaurants nationally.

Photo: iStock.

December 21, 2020

Legislators at long last agreed to a $900 billion package to stimulate the economy, help businesses and individuals and support vaccine distribution Sunday night. Many thought the deal would never become reality due to the current atmosphere of highly partisan politics amidst a backdrop of a president who still disputes an election that will put him out of the office Jan. 20 when President-elect Joe Biden is sworn in.

"We are going to crush the virus and put money in the pockets of the American people," said a joint statement issued by House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer, according to CNN.

The restaurant industry has been desperate to see a relief package passed, with more than 100,000 restaurants already permanently out of business and many brands struggling to hang on over a cold, hard winter that removes the option of outdoor dining in many places that brands had come to depend on.

Though details of the package are still being released, it is reported to contain a $600 direct stimulus payment for individuals under certain income levels. Here are more aspects of the relief measure which the House votes on today:

• More than $284 billion for forgivable Paycheck Protection Program loans and $15 billion in funds for "live venues, independent movie theaters and cultural institutions," according to a statement released jointly from legislators in Washington, D.C.
• Enhanced unemployment of $300/week.
• Rental assistance/eviction moratorium extension of $25 billion.
• $82 billion to help reopen classrooms safely.
• $10 billion in child care assistance.
• $13 billion in more SNAP benefits.
• $7 billion for extended broadband access.
• Billions of dollars for vaccine distribution, testing and contract tracing.
• Tax credit for "employers offering paid sick leave."

The National Restaurant Association said the second round of access to the Paycheck Protection Program has what it called "unique provisions aimed to assist the restaurant industry." This plan targets restaurant relief with the following provisions, it said:

• Enhanced PPP loan size: The PPP provides a business with a forgivable loan based on 2.5 times its monthly payroll costs. Restaurants, however, can seek forgivable loans based on 3.5 times monthly payroll costs.
• Enhanced access to PPP: Companies that employ a total of 300 or more employees at all locations (combined) are deemed ineligible for the PPP.

Other provisions that will benefit restaurants, according to the NRA, involve the deductibility of business expenses paid with PPP loans, enhancement of the Employee Retention Tax Credit, extension of the augmented Work Opportunity Tax Credit and increased tax deduction for business meals.

"The action taken by Congress today will keep tens of thousands of restaurants from closing in the coming months," NRA President and CEO Tom Bené, said in a news release. "A second round of PPP, combined with unique enhancements for the restaurant sector, will provide critical access to capital. Restaurant operators and their employees are dedicated to serving their communities, and today's bipartisan agreement will give them the opportunity to do that through the holidays. However, the long-term economic challenges facing independent, franchise, and chain restaurants will not end with the new year, and we will continue to press federal and state leaders for the support that will put us on the road to recovery."