BUFFALO, N.Y. (WBEN) - Restaurants in Western New York are urging the federal government to replenish its fund that gave some small businesses an opportunity to recover funds lost during the COVID-19 pandemic.
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The $28.6 billion fund, called the Restaurant Revitalization Fund, was designed to provide emergency assistance for bars and restaurants affected by the pandemic. Restaurants were eligible to receive funding equal to their pandemic-related revenue loss of up to $10 million.
Their calls are especially urgent now that outdoor dining has come to an end thanks to the colder weather in the region.
"The restaurant revitalization fund has offered help, but it hasn't offered enough," Daniel Garvey, Innkeeper at The Roycroft Inn and member of the New York State Restaurant Association's Board of Directors, said. "There were nearly 28,000 applicants in New York State requesting $9.6 billion in this fund. Only 17,000 were addressed and it left a gap of $5.6 billion required to get the restaurants and industry up and going. It hasn't been easy."
There were 372,000 applicants nationwide which requested more than $76 billion, nearly three times the amount in the fund.
Restaurants worries are compounded also by the continued supply-chain crisis, lack of a workforce, plus continued challenges associated with the pandemic.
"Restaurants support jobs, fuel our local economies, and as gathering places for family and friends, help to build back stronger communities," Congressman Brian Higgins said Thursday on the House floor. "I stand in strong support of swift replenishment of the Restaurant Revitalization Fund."
According to the Small Business Administration, $5 billion was set aside for applicants with 2019 gross receipts of not more than $500,000. $4 billion was set aside for applicants between that figure and $1.5 million. $500 million was set aside for businesses that lost $50,000 or loss. However, businesses do not know why the SBA no longer delivered funding to those who applied and did not receive money. They also expressed frustration that some businesses received money -which was supposed to be used for things like payroll, food and beverage, utilities, and more - but instead closed down.
Garvey worries that a lack of funding could mean many restaurants will shutter their doors for good.
"One thing the pandemic has showed the world is that the hospitality industry is an essential part of our lives," Dennis DiPaolo, owner of Ilio DiPaolo's Restaurant in Blasdell. "It's a central part of our economies. With that, we have to keep in mind we need help."