More Restaurant Revitalization Funds Sought By Virginia Senators

Vienna VA

04 August, 2021

11:48 AM

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VIRGINIA — On Wednesday, Virginia's two senators called on Senate leaders to replenish funds of the Restaurant Revitalization Fund. In a letter to Senate Majority Leader Chuck Schumer and Minority Leader Mitch McConnell, Virginia Sens. Mark Warner and Tim Kaine noted the high demand for the Restaurant Revitalization Fund assistance. The senators say replenishing the fund will help meet the needs of eligible businesses that applied. The $28.6 billion Restaurant Revitalization Fund was established by the federal American Rescue Plan Act and administered by the Small Business Administration. Restaurants could apply to receive funding equal to their pandemic-related revenue loss, up to $10 million per business or up to $5 million per physical location. Funds do not have to be repaid as long as they are used by March 11, 2023. Eligible businesses include restaurants, food stands, caterers, bakeries, bars, breweries, wineries, and more. The senators noted in their letter that the food and beverage industry has been one of the hardest-hit by the COVID-19 pandemic, with sales collectively down billions of dollars and jobs down 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," Warner and Kaine wrote. "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." According to the Small Business Administration, 2,729 Virginia businesses were approved for funds totaling over $653 million through June 30. That's out of 6,358 total applicants for over $1.4 billion in funds. The Small Business Administration closed the program on July 2 as funds ran out. Over 278,000 eligible applications were received, and about 101,000 of those applications were approved for funding. Warner and Kaine believe Senate leaders should bring forward legislation to provide additional funding for the Restaurant Revitalization Fund. "Virginia's restaurants play a major role in the Commonwealth's economy, employing over 300,000 people prior to the pandemic," the senators wrote. "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." Check Restaurant Revitalization Fund recipients by ZIP code here.