State Reps. Aaron D. Kaufer (R-Luzerne County) and Todd Stephens (R-Montgomery County) recently sent a memorandum to members of the House seeking cosponsors for legislation that would assist small, local restaurants devastated by the COVID-19 pandemic.
The bill would create the Small Restaurant Grant Program. The program would dedicate $250 million of assistance to assist these restaurants. Applicants would be eligible for up to $25,000 per location.
Funds would be used for working capital to support mortgage payments, rent, payroll expenses, utility expenses, or the purchase of food and beverages for restaurant operations.
To qualify for grants, restaurant owners must have no more than 10 locations statewide and have lost at least 50 percent of their monthly sales in April and May 2020.
“As we all know, COVID-19 has severely impacted businesses in Pennsylvania,” the memo said. “Sadly, the restaurant industry has been devastated by the pandemic. Prior to the arrival of the coronavirus, PA was home to over 25,000 restaurants, employing 408,000 people. Of the 408,000 employed in February 2020, 332,000 have been laid off or furloughed — that’s 81 percent of the entire workforce.”
Restaurants still operating in April reported an 82 percent decline in sales. It is estimated that up to 20 percent of restaurants will never reopen.