Will a $25B Grant Program Save New York’s Restaurants?
Unlike the small business Paycheck Protection Program (PPP), the next pandemic relief package would include a $25 billion grant program for New York City restaurants. If approved, it would not require a specific 25% lost revenue threshold. That means the size of the grant would depend solely on revenue lost between 2019 and 2020.
Just For New York
The $25 billion grant, part of the Biden Administrations’ $1.9 trillion COVID-19 relief package would go specifically to struggling big apple eateries. Provisions are still likely, but eligible restaurants and bars could file for grants of up to $10 million for lost revenue due to the pandemic.
However, major chains like Starbucks and McDonald’s, and others with over 20 locations, would be excluded from the grant. Funding can’t come soon enough as New York restaurant owners prepare for a tough winter with no indoor dining until Valentine’s Day.
Keep the Money
A major perk of this grant program is that they wouldn’t need to be paid back. That is unless grantees permanently closed or did not spend the funds on eligible expenses. In that scenario, the grant would be classified as a low-interest loan and therefore, required to be paid back.
Paying a Price?
The bloated federal debt has been a major concern for many economists. Many have expressed concern at passing another massive package on the heels of the $900 billion bailout Congress passed in December. On the flipside, Treasury Secretary Janet Yellen, urged lawmakers to pass the bill to fend off the lasting economic damage caused by the coronavirus. However, a speedy economic recovery should help reduce federal deficits in future fiscal years.