As the Economic Injury Disaster Loan program ends and COVID’s Omicron variant spreads uncertainty, small businesses, particularly restaurants and bars, are facing challenging times. Efforts to refill the Restaurant Revitalization Fund and other relief programs are currently stalled, with the White House indicating that this crucial business segment may not receive further targeted aid. Despite three congressional proposals aimed at replenishing the fund, the outlook remains bleak. This has necessitated the development of Startup Survival Strategies for those in the industry, who, with no federal relief in sight for 2022, will need to continue innovating and adapting with limited resources. As other issues take precedence for Congress and the Administration, the survival of small businesses rests on the ability of business owners to confront and overcome these ongoing challenges.

Uncertainty for Small Businesses

With the sunset of the Economic Injury Disaster Loan program, there is little, if any, good news for restaurateurs and small business owners about any further Federal Disaster Relief Loan/Grant programs. As COVID’s Omicron variant sweeps the nation, it is creating further uncertainty for all small businesses, especially restaurants and bars.

Stalled Relief Programs

Efforts to replenish the Restaurant Revitalization Fund (RRF) and other relief programs appear to be stalled in Congress. Furthermore, the White House is signaling that this vital small business segment may not be receiving any more targeted support.

Congressional Proposals

At this time, there are three separate congressional proposals pending that would replenish the RRF for varying amounts, generally between $48-$70 billion. However, but few observers believe that any of the trio will become law. As a result, restaurant owners are increasingly concerned about their viability as the pandemic enters yet another year.

Surviving Without Federal Relief

For SBDC clients in this industry segment, 2022 starts with no federal relief in sight. Therefore, in order to survive, clients will need to continue to pivot and innovate with the meager resources available to them. Congress and the Administration have moved on to other priorities, leaving eateries on their own during this time of uncertainty. Numerous challenges continue to confront small business owners and only the strongest, most innovative of them will survive.

Question & Answer

What challenges are small businesses, particularly restaurants and bars, facing currently?

Small businesses, especially restaurants and bars, are facing challenging times due to the end of the Economic Injury Disaster Loan program and the uncertainty brought by COVID’s Omicron variant.

Why are efforts to refill the Restaurant Revitalization Fund and other relief programs stalled?

Efforts to replenish the Restaurant Revitalization Fund and other relief programs are currently stalled in Congress, with the White House indicating that further targeted aid may not be provided to this crucial business segment.

Are there any congressional proposals aimed at replenishing the Restaurant Revitalization Fund?

There are three congressional proposals pending that would replenish the Restaurant Revitalization Fund for varying amounts, generally between $48-$70 billion. However, it is unlikely that any of these proposals will become law.

How are small businesses in the restaurant industry expected to survive without federal relief in 2022?

With no federal relief in sight for 2022, small businesses in the restaurant industry will need to continue innovating and adapting with limited resources to survive during this time of uncertainty.