HARRISBURG — For hospitality businesses that have suffered due to COVID-19 closures and mitigation efforts, new funding is now available to provide immediate relief.
Gov. Tom Wolf announced Tuesday that a new grant program to support local businesses in the hospitality industry, the COVID-19 Hospitality Industry Recovery Program, will provide $145 million in relief to the industry by March 15, according to a news release.
“For so many businesses in the hospitality industry, taking the necessary steps that keep employees and patrons safe directly hurts their bottom line. After all the hardships businesses have endured, and all of the work they have done to keep their communities safer, they need and deserve our help,” Gov. Wolf said. “The COVID-19 Hospitality Industry Recovery Program will provide immediate relief to these businesses and I urge them to apply as soon as the program opens in their county.”
Funding was provided in the form of block grants to each county based on population. Grants will be awarded in $5,000 increments with a $50,000 maximum, the release states.
Each county will administer the funding through one or more designated Certified Economic Development Organization or Community Development Financial Institution, which will then process applications from businesses in each county. The CEDOs or CDFIs must begin accepting applications from businesses by March 15, the release states.
A business is eligible if:
- It has a North American Industry Classification System (NAICS) designation within the Accommodation subsector (721) or Food Services and Drinking Places subsector (722) and where accommodations, food or drink is served to or provided for the public, with or without charge;
- It has fewer than 300 full-time equivalent employees;
- It has a maximum tangible net worth of not more than $15 million;
- It was in operation on February 15, 2020 and remains in operation and does not intend to permanently cease operations within one year of the date of application;
- COVID-19 has had an adverse economic impact on the eligible applicant which makes the grant request necessary to support the ongoing operations of the eligible applicant.
Priority will be given to applicants that have not received a loan or grant issued under the authority of the commonwealth or the commonwealth’s political subdivisions or by the federal government; were subject to closure by the Governor’s disaster declaration; or can show a reduction in gross receipts of 50% or more for the period beginning on April 1, 2020, and ending on December 30, 2020, the release states.
Program guidelines are available on the Department of Community & Economic Development’s website.
Wolf also announced that he’s considering easing restrictions for bars and restaurants as more folks get vaccinated and the weather gets warmer. But Wolf didn’t give a timeline or specify which restrictions may be lifted.
For almost a year now – restaurants have faced shutdowns – several restrictions and now fear closing down for good – not knowing what the future holds.
“If we are uncertain then our guests are probably uncertain and if they are uncertain than they are not coming in to spend money,” Bill Atkinson, owner of Chop Shop in Butler, said.
Atkinson said the funding is a step in the right direction.
“It’s going to be a way that we can help take care of our staff who stuck with us through coronavirus,” he said.
Stacy Garrity, state treasurer, said this money can be a tremendous help during these challenging times.
“These folks are hurting due to this pandemic and arbitrary inconsistent shutdowns by the Governor and Department of Health so they are finally going to get some of the relief they need,” she said.
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