Kildee Votes for New Economic Relief for Michigan Restaurants, Small Businesses

WASHINGTON—Congressman Dan Kildee, Chief Deputy Whip of the House Democratic Caucus, today applauded the bipartisan passage of the Relief for Restaurants and Other Hard Hit Small Businesses Act, supported by Democrats and Republicans, to deliver much-needed economic relief to Michigan small businesses impacted by the pandemic.

"Small businesses are the lifeblood of Michigan's economy," Congressman Kildee said. "While our economy is growing and adding jobs, I have heard from many local restaurants, bars, gyms and shops that are still struggling during the pandemic. Global supply chain disruptions and Russia's war in Ukraine have resulted in rising costs for families and small businesses. They need our support to ensure they can keep workers on payroll and continue operating in communities like Flint, Saginaw, Bay City and Midland."

In the American Rescue Plan, which Congressman Kildee helped to pass, Congress established the Restaurant Revitalization Fund (RRF) to provide economic relief to restaurants across the nation, including over $30 million for mid-Michigan restaurants, according to the U.S. Small Business Administration (SBA). Michigan small businesses were also eligible for grants through the Shuttered Venues Operators Grant (SVOG) Program to support local entertainment venues, like Saginaw's Temple Theater.

These vital programs, however, were inundated with applications and only about one in three applicants received relief. Congressman Kildee's bill would replenish the RRF to make these Michigan small businesses, restaurants, gyms, and non-profit organizations eligible for assistance. It also establishes robust oversight and reporting requirements to verify proper grant awarding, use of funds, and provide maximum transparency. The bill is fully paid for with funds recovered from bad actors who defrauded past COVID-19 relief programs, including the Paycheck Protection Program (PPP), Emergency Injury Disaster Loans, SVOG, RRF, or the Hard Hit Industries program.

The Relief for Restaurants and other Hard Hit Small Businesses Act provides:

• $42 billion to replenish the Restaurant Revitalization Fund to provide relief to approximately 150,000 eligible entities that applied during the initial grant program but were not able to receive funding;
• $13 billion for the Hard Hit Industries Award Program; this provides awards to small businesses that suffered significant revenue losses during the pandemic but were not eligible for the RRF or SVOG Program.

"Many restaurants are in dire need of additional funds that were left out of the initial round of RRF funding. The increased costs of goods have left many restaurants in a scenario that without additional financial help they will have to close permanently. While many people think the industry is back to normal, that could not be farther from the truth. Shutdowns and lost revenue over the past two years has left the industry in an extremely difficult situation and RRF would help those restaurants to get back to normal. We thank Congressman Kildee for helping pass this crucial legislation," said Dave Dittenber, DRI Restaurants in Bay City and Midland, Mich.

"The challenges we have faced over the past two years have been extremely difficult to overcome. Closures and limiting service as required has created large financial gaps in our business model. The stops and starts hinder how we operate. Additionally, the supply chain and new staffing challenges have required us to try and find ways to fund our restaurants. Keeping our team employed continues to be a struggle as we try to serve our community. We truly need additional RRF funds to bridge the gap and allow us to continue to operate," said Greg Lobdell, Mission Restaurant Group, Drift Shoreside Beer Garden and Food Truck Park, Bay City, Mich.

"We still have not fully recovered from two of our restaurants being shuttered for an entire season due to restrictions and mandates from COVID-19. We are a small family owned and operated company that depends on a very short season in northern Michigan and we have struggled to get back to anywhere near normal. Thank you, Rep. Kildee, for helping pass this additional relief for Michigan restaurants," said Todd V. Callewaert, Pancake House and Seabiscuit Café Restaurants, Mackinac Island, Mich.

Congressman Kildee has been an advocate for economic relief for Michigan small businesses. In November 2021, Kildee sent a letter urging for Congress to pass additional economic relief for small businesses and restaurants. In May 2020, Kildee introduced the RELIEF for Main Street Act, which provided support for small businesses that were not eligible for PPP loans.