PHILADELPHIA (KYW Newsradio) — Restaurants whose business took a nose dive during the coronavirus pandemic can now apply for part of $28.6 billion in federal aid currently available to help them get back on their feet.
The Small Business Administration (SBA) website crashed on Monday because it was overwhelmed by the number of applicants, but it is back in working order Tuesday.
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"We saw it crash, pretty quickly," said Ben Fileccia, director of operations and strategy for the Pennsylvania Restaurant and Lodging Association. "And we were kind of expecting that, because, you know, you're talking millions of restaurants across the country all trying to apply at the same time."
The SBA's Restaurant Revitalization Fund is designed to pump money back into restaurants and get cash flowing back into local economies. Fileccia says there are some guidelines that will allow the hardest-hit restaurateurs first crack at the money.
"For the first three weeks, it's going to be opened up for women-owned restaurants, veteran-owned restaurants and restaurants in disadvantaged areas. After that, it's going to be opened up to everybody else," Fileccia said.
"There are some limitations with the grant program," he added. "You know, large chain restaurants will not be eligible. Folks that made very large revenue would not be available for them. And it also considers how much money you receive from your PPP loans."
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He urges restaurant owners who have not yet applied to do it now.
He says the SBA website has directions that will walk business owners through the process.
Fileccia says there are 5,800 restaurants in Philadelphia alone, and 26,000 in the state. Restaurant workers make up the second-largest employment sector in the state, he added.
"We are very fortunate that it is finally open, and there's $28.6 billion available, which seems like a lot. But when you look at all the restaurants and everybody that needs support right now ... you know the big scheme of things, it's not a ton."