Food Business News - January 5, 2021 - 20

WASHINGTON

Relief package seen
as 'down payment'
on what's needed
Restaurants and food assistance providers
may need more help in 2021
©JEFF MCCULLOUGH - STOCK.ADOBE.COM

A

collective sigh of relief could be
heard in Washington and across the
nation on news President Donald
Trump on Dec. 27 signed the $2.3 trillion
Consolidated Appropriations Act, 2021,
which included $900 billion earmarked for
COVID-19 relief as well as funding for federal agencies and programs to ensure there
was no government shutdown.
The new COVID-19 relief package
includes provisions that will provide
additional much needed support to the
restaurant industry as well as to nutrition
assistance programs and providers (support
to the farm sector is discussed on page 45).
Support provided by the much larger
$2.2 trillion Coronavirus Aid, Relief and
Economic Security Act (CARES), which
became law in March 2020, has been
drawn down, which made securing the
current relief package all the more urgent.
Still, it was likely Congress will have to
consider additional relief legislation in the
new year.
The Paycheck Protection Program established under CARES was extended and
revised under the current relief package.
The PPP provides forgivable loans to small
businesses to help them keep their facilities open and their workforces employed.
Businesses that received a PPP loan
under CARES are eligible to apply for
a second loan, or second draw, under
the renewed PPP as long as they have
used or will use the full amount of their
first loans and they meet other revised
eligibility requirements. Businesses that
did not receive a PPP loan under CARES
were invited to apply for a loan under the
renewed program.
Extension of the PPP was a principal
goal of the National Restaurant Association. The renewed PPP includes certain
changes sought by the NRA that were
expected to make it a more effective tool
for struggling restaurants.
First, the revised PPP will provide a
20

Food Business News

loan amount up to 3.5 times the average
monthly payroll costs registered during
the one year prior to the loan, or the
prior calendar year, for businesses in the
accommodation and foodservice industries, such as restaurants, as compared
with loan amounts up to 2.5 times average
monthly payroll costs for businesses
in other sectors. The maximum loan
amount in all cases was $2 million.
Second, the revised PPP features
increased accessibility. Restaurant and
lodging businesses with 300 or fewer
employees per location are eligible to
apply. This qualification compared with
the requirement for other businesses that
they must have 300 or fewer employees in
total, spread across all their locations.
Under the initial PPP rules as established by CARES, businesses with fewer
than 500 employees in total could apply
for a loan.
The NRA said the changes to eligibility requirements in the revised PPP
reflected " the reality that many mid-sized
and larger restaurant groups are on the
verge of bankruptcy and allows restaurants to qualify for PPP as long as they do
not employ more than 300 employees at
each physical location. "
Tom Bené, president and chief
executive officer of the NRA, said the relief
package " will keep tens of thousands of
restaurants from closing in coming months.
A second round of PPP, combined with
unique enhancements for the restaurant
sector, will provide critical access to capital. "
The NRA viewed the COVID-19 relief
package as a " down payment " on what
may be required to ensure the recovery of
the restaurant industry. The association
has urged Congress to create a Restaurant
Recovery Fund for structured relief to help
restaurants get the liquidity they need to
adapt, rehire and eventually reopen.
The NRA also sought the establishment
of a long-term loan program beyond PPP so

restaurants can rehire, retrain and retain
employees by providing up to six months of
operating costs and additional support.
Food assistance providers also viewed
the COVID-19 relief package as a down
payment on what aid may be required.
The relief package increased the
monthly SNAP benefit level by 15%
based on the June 2020 Thrifty Food Plan
through June 2021 and excluded pandemic unemployment compensation benefits
from being counted toward household
income for SNAP. The package also extended SNAP eligibility to college students
who are eligible for a federal or state work
study program or have an expected family
contribution of zero.
The package invested an additional
$400 million in The Emergency Food Assistance Program through Sept. 30, 2021.
This program is one of the largest sources
of food for food banks.
The COVID-19 relief also will provide
$13 million to the Commodity Supplemental Food Program through Sept. 30, 2021,
and will provide what emergency relief
is required to help school meal, child and
adult care programs in financial need.
Additionally, the relief package
requires the US Department of Agriculture
to establish a task force on food delivery
models for the Special Supplemental
Nutrition Program for Women, Infants and
Children (WIC) participants so they have
access to curbside pickup and other safe
purchasing methods during the pandemic.
" We are deeply relieved that the
bipartisan COVID relief deal includes an
increase in benefits under SNAP, as well as
additional funding so our network of food
banks can continue to meet the increased
need they are seeing every day, " said Kate
Leone, chief government relations officer
at Feeding America. " FBN
Jay Sjerven
jsjerven@sosland.com
January 5, 2021



Food Business News - January 5, 2021

Table of Contents for the Digital Edition of Food Business News - January 5, 2021

Food Business News - January 5, 2021 - 1
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