Last night, the U.S. Small Business Administration (SBA) emailed Restaurant Revitalization Fund (RRF) applicants informing them that the fund has closed and access to its portal is closed on the 14th. July. While the SBA has not released any news regarding the move at the time of writing, the National Restaurant Association made the announcement today at around 9:30 a.m. EST in an email.
In response, NRA Executive Vice President of Public Affairs Sean Kennedy said: âFor 100,000 restaurants, the RRF has made their future clear and stable, but for the more than 200,000 operators excluded from funding, receive this letter today only increases their fear and anger.
âAcross the country, a growing number of restaurants have uncertain futures. Many are in the ironic position of seeing indoor catering pick up again, but perceive less income amid rising food prices and insufficient staff to fully open. These operators made all the cuts. and the changes they can to stay open last year and fear once again that they won’t do so another month.We need Congress to act on the RRF Replenishment Act to provide the SBA with the funds they need to accomplish this important mission. “
The NRA provided data insight into the current state of the restaurant industry, to make it clear that the need for federal funding for restaurateurs is still significant:
Consumer spending in restaurants continued its upward trend in May. At first glance, sales have exceeded February 2020 sales volumes, however, after adjusting for menu price inflation, actual food and beverage outlets’ sales remain around 3% below pre-season levels. pandemic.
In the first 13 months of the pandemic, restaurant and foodservice sales fell $ 290 billion from expected levels.
â¢ 90,000 restaurants are closed permanently or permanently.
â¢ According to a survey by Alignable, 39% of small business restaurant owners said they could not cover their June rent.
â¢ More than 362,000 restaurants have applied for more than $ 75 billion in grants.
â¢ The total number of applicants is around 55% of the total number of catering establishments opened in February 2020.
â¢ On average, restaurants have applied for grants of around $ 207,000, demonstrating the enormous financial need that is preventing these small businesses from recovering.
QSRweb had not received a response to a request for comment at the time of writing this SBA article.