The U.S. Government & NRA Offer Relief for the Restaurant Industry
As the COVID-19 pandemic continues to worsen in the United States, the majority of foodservice operations have been forced to either drastically alter their business models or shut down entirely. Although some operators have been able to continue offering carryout and delivery orders for food and beverages (including alcohol, in states that have temporarily permitted it), this shift has left millions of service industry employees without jobs and countless small businesses and restaurant groups struggling to survive the crisis.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act – a $2 trillion stimulus bill signed into law on March 27, 2020 – offers financial assistance to many of those affected in the restaurant, bar, and hospitality industries. The National Restaurant Association (NRA) has closely followed the COVID-19 crisis and worked to provide restaurant owners and employees with resources; the week after the CARES Act passed, the NRA took those resources a step further and unveiled the Restaurant Employee Relief Fund (The Fund).
If you're a member of the service industry who's been financially impacted by the COVID-19 crisis, you may qualify for assistance from the CARES Act or the NRA's Fund.
What Does the CARES Act Include?
The CARES Act is divided into several sections, including Small Business Interruption Loans and Relief for Individuals, Families, and Businesses.
The majority of independent foodservice operations will be classified as small businesses that employ fewer than 500 people, which means they will be eligible for a small business interruption loan, which can be used for payroll support, including paid leave (sick, medical, or family) and employee health insurance costs; employee salaries; mortgage payments; rent; and utilities.
Individual taxpayers are provided financial assistance in the Relief for Individuals, Families, and Businesses division of the bill, which stipulates that checks will be issued for $1,200 per person (or $2,400 per married couple) with an additional $500 per child in a family.
For more information about what this relief package includes, who is eligible, and how to access the resources provided, we recommend checking out the NRA’s explanation of the CARES Act.
The National Restaurant Association Offers Assistance
On April 1, 2020, the NRA announced that it partnered with celebrity chef Guy Fieri to create the Restaurant Employee Relief Fund through its Educational Foundation for employees in the restaurant industry who have been financially impacted by the COVID-19 crisis through layoffs, loss of hours, or other wage decreases resulting from the pandemic.
As of April 2, those who are eligible can apply for aid to receive a $500 grant on a first-come, first-serve basis for as long as RERF has funds to distribute. These funds are available to cover a car payment or other transportation costs, child care, groceries, home rent or mortgage, medical bills, student loan payments, and utility bills.
Employees of legal age living in the U.S. or in a U.S. territory whose primary source of income for the last year was in the restaurant industry and who, in the last year, have held a full- or part-time job in the restaurant industry for 90 days or longer are eligible to apply for a grant from the Fund. According to RERF's Application FAQ, applicants can expect to be notified about approval within 2 to 4 weeks of applying.
The National Restaurant Association Educational Foundation is a registered non-profit and is accepting donations for the relief fund, with 100 percent of donations going toward employee grants.
Note: Due to a high volume of traffic, the Fund's website may temporarily be experiencing technical difficulties.
