Restaurant Group Calls on Congress to Pass Restaurant Act
Posted On August 6, 2020
As Congress is set to work on a 4th coronavirus relief package, the National Restaurant Association (NRA) is calling on legislators to pass a Restaurant Act.
According to Sean Kennedy, NRA’s Executive VP for Public Affairs:
“We have been moving into this stop, start, off again, on again cycle, which is not sustainable, aside from being capital intensive for an industry that had about 16 days worth of working capital on hand before the onset of the pandemic.”
.Through a letter addressed to the House and Senate leaders, the NRA conveyed concerns that the nation’s restaurant industry is already at risk of losing as much as $240 billion in revenue as a result of the COVID-19 pandemic.
Although still a projection, the group’s forecast is imminent and will likewise result to an increase in the more than 8 million workers who were laid off or on furlough between the months of March and May. That being the case, the NRA is calling on Congress to provide the restaurant industry with a specific relief package.
The letter explained the loss projection as one based on the more than 100,000 restaurants ordered by state and local governments to cease operations over a two-week period. Despite the federal recovery programs of the CARES Act, the group asserts that the mechanisms in place are not enough to sustain the industry. Considering that the current situation has become more dire, now that the spread of the pandemic throughout the country has worsened.
What the NRA Proposes as Provisions of the Restaurant Act
As part of the restaurant trade group’s “Blueprint for Restaurant Revival” strategies, the calls for a Restaurant Act include:
Grants specifically for restaurants; to be provided under a $120-billion recovery and revitalization fund.
Permit restaurant owners to claim as tax deductions the expenses incurred even if they used the proceeds of loans secured under the Paycheck Protection Program.
Supplement funding and improve terms that will enable those in the food business to put forward claims for business interruptions and liability coverage. by way of the Economic Injury Disaster Loans.