A sobering May 19 article from the Independent Restaurant Coalition claims that at least 50% of restaurants could close after the senate does not pass funding for struggling restaurants. Sponsored by Senator Roger Wicker and Senator Ben Cardin, The Small Business COVID Relief Act hoped to replenish the Restaurant Revitalization Fund (RRF), which 90 senators voted to create last February, with $40 billion. However, in a 52 to 43 vote, the funding did not pass.

According to Erika Polmar, Executive Director of the Independent Restaurant Coalition, more than half of the 177,300 restaurants waiting for this grant will close within the next few months. “Local restaurants expected help and the Senate couldn’t finish the job”, according to Polmar. The report states that at least 90,000 restaurants and bars have closed since the beginning of the pandemic, which is when the Independent Restaurant Coalition originated.

In 2021 alone, nearly 300,000 restaurants applied for the Restaurant Revitalization Fund grants, but nearly 200,000 didn’t receive the funding. Here are some interesting statistics from the article:

– 42% of businesses that did not receive RRF grants are in danger of filing for or have filed for bankruptcy, compared to just 20% that received RRF grants.

– 28% of businesses that did not receive RRF grants have received or are anticipating receiving an eviction notice compared to just 10% that received RRF grants.

– Restaurant and bar owners who did not receive an RRF grant are taking on more personal debt. 41% of people that did not receive RRF reported taking out new personal loans to support their businesses since February of 2020. This is only true for 19% of businesses that received an RRF grant.