NORTH CAROLINA — State Senator Harper Peterson is hoping the state legislature can come together to pass Senate Bill 788 known as the ‘Save Our Restaurants Act.’ Peterson is a sponsor of the bill and it would establish a restaurant and hotel stabilization fund for $125 million in loans to assist qualifying businesses during the Covid-19 pandemic.
“Rescuing our restaurant industry is crucial to our economic recovery. Close to 300,000 restaurant jobs have been lost already. Also at stake are our essential small farms and fisheries, interdependent with our restaurant industry,” Peterson said.
The bill itself was filed last week but as of now, no further action has been taken on the bill.
While the bill would address both restaurants and hotels, $50 million of the money would be allocated specifically for restaurants.
“Fifty million dollars ($50,000,000) of the funds appropriated by Section 1(b) of this act shall be allocated to one or more community development financial institutions (CDFI) selected by the Director of the Budget for the purpose of making loans to assist qualifying businesses with business needs during periods of economic hardship occasioned by the COVID-19 pandemic,” according to the bill.
So who would be considered for these loans if the bill were to pass? Well, it wouldn’t be major chain restaurants since the bill, as written, would not include restaurants with more than 25 locations.
“A restaurant or similar establishment located in this State, (ii) with the primary purpose of preparing and serving food subject to the taxes imposed by Article 5 of this Chapter, and (iii) capable of showing economic losses in gross revenue of greater than fifty percent (50%) as a result of the State of Emergency. The term does not include restaurants with more than 25 locations,” according to the bill.
There would also be a prioritization for independently owned restaurants as well as those who have suffered the greatest economic losses during the pandemic.
The rollout of this bill, as proposed, would take place in two parts to help ensure that the restaurants that need the money the most would get the help they need first. The bill would set a cap in phase one for businesses making less than $10 million annually and fewer than five stores.
“The CDFI shall operate the program in two phases. In phase one, loans may be awarded only to qualifying businesses with franchises or restaurants with fewer than five locations and with cumulative gross receipts from business activities for the taxable year of less than ten million dollars ($10,000,000). Phase one shall be held open for eight weeks. After eight weeks, the CDFI shall open phase two, in which loans may additionally be awarded to qualifying businesses not meeting the eligibility requirement of phase one,” according to the bill.
The bill, as previously stated, is still in its infancy and Peterson is hoping to garner bipartisan support in Raleigh to move it forward in committee. The legislature is currently in session, but with the number of bills in the General Assembly, it is unclear when the bill will be discussed or voted upon.
You can read the full bill by visiting the General Assembly’s website.
