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COVID-19

Mixed reviews from Boise businesses on COVID relief bill

Senate Majority Leader Mitch McConnell of Kentucky walks past reporters Dec. 15 on Capitol Hill in Washington, D.C.  (Susan Walsh)
By Ryan Suppe Idaho Press

BOISE – The $900 billion COVID relief package passed by Congress this week is being praised by some local businesses – particularly event venues, which will see much needed aid – while others say the legislation does not provide enough support for those industries hit hardest by the coronavirus pandemic, such as bars and restaurants.

The Boise Metro Chamber, which represents 1,850 area businesses, applauded the bill for containing provisions the organization lobbied for.

“Namely, expanded and extended Payroll Protection Program (PPP) loans and other aid for small businesses, restaurants, live venue operators, airline workers, and a host of other programs to jump start our economic recovery,” Bill Connors, president and CEO of the Boise Metro Chamber, said in a statement.

The bill includes $284 billion to extend the PPP program, allowing small and medium businesses to apply for a second round of forgivable loans; it also expands the types of organizations that can receive PPP. The bill extended a CARES Act tax credit, which encourages businesses to keep employees on their payroll. And the bill includes $15 billion in assistance for live venues, independent theaters and cultural institutions, as part of the Save Our Stages Act.

The Save Our Stages Act will enable locally owned businesses to delay opening until it is safe to gather in groups, according to a news release from the National Independent Venue Association and Treefort Music Fest, which was delayed twice this year.

“With Save Our Stages Act’s inclusion in this relief package, we are confident that we will see a return to live performances and gatherings, shows at our favorite local venues, and festivals like our own – once again employing artists, production crews, and other support staff,” said Eric Gilbert, co-founder of Treefort Music Fest and Duck Club Presents. “As our stages come back, so do the surrounding neighborhoods as we begin to rebuild.”

In Idaho, venues, restaurants and bars likely were the hardest hit among business impacted by the virus. While many businesses had to close during a monthlong shutdown this spring, most of them were allowed to reopen shortly after, with little to no restrictions. But venues, restaurants and bars face continuing restrictions, such as capacity limits.

As a result, dozens of Treasure Valley pubs and eateries have permanently closed.

FARE Idaho, an organization that represents independent food and beverage proprietors, including farmers and distributors, released a statement Monday saying the bill is helpful, but it falls short of providing a long-term solution for the food and beverage industry.

“We needed something, and this second round of PPP was not what we had hoped for for the restaurant industry, but it’s workable,” said Dave Krick, president of FARE Idaho and co-owner of Boise businesses Bittercreek Alehouse, Red Feather Lounge and Diablo and Sons.

According to the bill, a qualifier to receive PPP is evidence of more than 25% revenue lost in one fiscal quarter this year. Krick said the qualifier allows businesses that may actually see revenue gains this year treated the same as thousands of bars and restaurants across the country that are in much worse shape, having seen 50% to 80% losses. Further, some bars and restaurants have yet to spend their first round of PPP because they’ve had to remain closed, and another qualifier for the second round PPP is the first round must be exhausted.

“While it does help a large number of restaurant and beverage establishments, it also doesn’t help a lot of them that have been hit really hard by this,” Krick said. “What they need is unrestricted access to capital.”

FARE Idaho and national restaurant trade groups are aggressively lobbying for the RESTAURANTS Act, which would provide specific aid to restaurants and bars. The bill passed the U.S. House of Representatives in October, but a similar bill stalled in the Senate, despite having bipartisan support from more than 50 co-sponsors.

Congress may take up the legislation again in 2021. More than 300 Idaho businesses, including small and large farming operations, food and beverage producers and restaurant and bar suppliers, signed a letter asking the Idaho congressional delegation to support the bill.

“I’m hoping that there is a chance the RESTAURANTS Act could be resurrected,” said Katie Baker, executive director of FARE Idaho. “Everything just seems like a waiting game and a roller coaster.”