The US government under President Joe Biden is fully compensating hospitality businesses for ‘all losses’ incurred as a consequence of the Covid-19 pandemic.
Part of President Biden’s $1.9 trillion economic stimulus package is the $28.6 billion Restaurant Revitalization Fund (RRF). The RRF will offer tax exempt grants to hospitality businesses impacted through the Covid-19 pandemic, compensating 100% of all losses suffered with no requirement to be repaid.
The revenue loss is calculated by subtracting 2020 gross revenues from 2019 gross revenues.
There are two exceptions from claims, owners and operators of more than twenty outlets, and publicly traded companies. Owner operators of a franchise of a publicly traded company are eligible.
Small businesses owned and controlled by women, veterans or socially and economically disadvantaged owners will be prioritised. “Nice touch”.
Full details have not yet been released, but we are following this initiative closely and will be updating on it as rolled out.
The RRF at first sight looks generous, in reality it will enable the US hospitality industry to bounce back fully as restrictions are eased. It is an investment in the future of the US avoiding cataclysmic business failure rates and injects much needed liquidity into the economy.
It could also be argued, and we are, that as the pandemic is a national disaster, as it is in every country, governments have a responsibility to ‘fully’ protect ‘all’ citizen’s from it.
Rishi?
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Hospitality & Catering News: US ‘Restaurant Revitalization Fund’ providing grants equal to 100% of pandemic losses. – 27 March 2021 – US ‘Restaurant Revitalization Fund’ providing grants equal to 100% of pandemic losses.
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