HOUSTON — While the upcoming stimulus checks may be grabbing most of the headlines in the American Rescue Plan, the new law will also be a huge boost for Houston-area restaurants and bars.
It includes a nationwide $28.6 billion grant program, with up to $5 million for most restaurants (excluding large chains) and up to $10 million for franchisees with 20 or fewer locations.
The amount will be calculated by subtracting 2020 revenue plus any Paycheck Protection Program loans from a business’ 2019 revenue.
For example, if a restaurant earned $100,000 in 2019, then $30,000 in 2020 but received a $20,000 PPP loan, it would receive a $50,000 grant.
“Those are the folks that are really hurting,” said Kelsey Erickson Streufert, vice president of Government Relations and Advocacy for the Texas Restaurant Association. “It’s great to see that those are the folks that are eligible for this program.”
Erickson Streufert says the program also sets aside money for underserved groups during the first three weeks.
“So women owned businesses, veteran owned businesses, minority owned businesses,” she said. “That should help ensure that our underserved, underbanked, and smaller operations are able to access the grants that they need and deserve.”
Erickson Streufert says Texas had 50,000 restaurants pre-pandemic. The TRA estimates between 20 to 25% of those closed because of the pandemic.
Marcus Davis, owner of The Breakfast Klub in Midtown, says he’s grateful for the Houstonians that showed up and sustained his restaurant during the pandemic.
“The two decades that I’ve been in business, I’ve seen a lot, from hurricanes to market crashes,” said Davis. “Never seen a pandemic.”
Davis called the new stimulus bill a relief.
“For the everyday working man, this is a good thing,” said Davis. “For small businesses this is a good thing. When people have money in their pocket to spend, then they spend it.”
According to the Independent Restaurant Coalition, the new grant program also includes “caterers, brewpubs, taprooms, and tasting rooms.”
The Small Business Administration is working out the application process.