Package to aid struggling restaurant industry fails in US Senate
An aid package aimed at replenishing a fund earmarked for restaurants, gyms and other businesses hard hit by the pandemic failed to advance to a vote in the U.S. Senate on Thursday.
In early April, the U.S. House passed the Relief for Restaurants and other Hard Hit Small Businesses Act of 2022 (H.R. 3807), sending it to the Senate.
While 52 senators voted to advance the $48 billion aid package, 60 votes were needed for passage. Forty-three senators voted against the bill.
Included in the package was $40 billion earmarked for the Restaurant Revitalization Fund, or RRF.
Restaurants in Michigan and nationwide that were shut out of government aid hoped for another shot at receiving funds.
“Today, a Senate filibuster dashed the promise made to more than 177,000 small business owners in communities across the country,” Sean Kennedy, executive vice president of public affairs for the National Restaurant Association, said in a statement.
“These restaurant owners believed the creation of the Restaurant Revitalization Fund was a down payment, and that the Senate would complete the mission with this vote. ... While there are valid questions about government spending and inflation, restaurants should not be caught in the crossfire."
The aid package was an amendment to the Restaurant Revitalization Fund Replenishment Act of 2021 and would have pumped another $60 billion into it.
While the initial round in May helped more than 100,000 restaurants, two-thirds of applications received no funds at all.
" I had low expectations of the RRF Replenishment to pass," said Patti Eisenbruan, co-owner of Brown Iron Brewhouse in Royal Oak and Washington Township. "Although it would have secured a better financial future for us, there are more pressing issues at hand.
"I believe the original process of the RRF had serious flaws, and our promise of funding was revoked. As a woman-owned business, we have a successful business plan and overwhelming community support to be successful on our own laurels. My heart continues to break for the 'mom and pop' dreamers out there facing this next financial crisis. "
More: Restaurant operators face staffing shortages, higher food costs and menu prices
More: Relief measure for restaurants hard hit by pandemic passes US House
More: Dave's Hot Chicken's second Michigan location opens Friday in Troy
“Local restaurants across the country expected help but the Senate couldn’t finish the job,” said Erika Polmar, executive director of the Independent Restaurant Coalition. “Neighborhood restaurants nationwide have held out hope for this program, selling their homes, cashing out retirement funds, or taking personal loans in an effort to keep their employees working and their doors open. We estimate more than half of the 177,300 restaurants waiting for an RRF grant will close in the next few months as a result of congressional inaction.”
In Michigan, nearly 9,000 applied and nearly 3,300 got help.
The fund spent more than $780 million to help Michigan restaurants recover from the COVID-19 pandemic. But Michigan's recipients were a mix of venues, including wineries, caterers, food trucks, bars, saloons and chain restaurants. None of this taxpayer money — $28.6 billion nationwide — must be repaid as long as it is used properly.
At the same time, thousands of restaurants across Michigan got nothing from the Restaurant Revitalization Fund. That includes some that were promised a grant, only to have it taken away.
Contact Detroit Free Press food writer Susan Selasky and send food and restaurant news to: sselasky@freepress.com. Follow @SusanMariecooks on Twitter.
Support local journalism and become a digital subscriber to the Free Press.
This article originally appeared on Detroit Free Press: New round of restaurant relief stalls in US Senate
