President Joe Biden visited a Washington restaurant owned in part by Mexican immigrants on Wednesday to highlight $28.6 billion in federal aid for restaurants that struggled during the pandemic.
Under the Covid-19 relief measure Biden signed in March, restaurants can apply for grants ranging from $1,000 to $5 million per location, or $10 million for those with 20 or fewer locations.
“The restaurant industry is so badly hurt nationwide,” Biden said at the Las Gemelas restaurant in Northeast Washington.
According to the White House, the restaurant had to cut its staffing to 7 from 55 during the pandemic, but was able to rehire employees and provide back pay to those who returned through the Paycheck Protection Program.
Restaurants are among the businesses hardest hit by Covid-19 lockdowns and restrictions, as states forced many to temporarily close, curtail hours and reduce seating.
The White House said Wednesday that 186,200 restaurants, bars and other eligible businesses had already applied for the grants from all 50 states, Washington, D.C., and five U.S. territories.
The Small Business Administration began accepting grant applications on Monday and will continue until the money is fully spent. For the first three weeks, preference will be given to applicants that are majority owned by women, veterans or “disadvantaged” individuals.
The National Restaurant Association is already concerned about the money running out.
“The question on the minds of many is what happens when applications outpace the available funds,” Tom Bene, the association’s chief executive officer, said in a Monday statement. “Restaurants are operating in an uncertain environment, with continued needs to restore customer confidence in their safety and to bring workers back into the economy.”
This article was provided by Bloomberg News.