Maryland Restaurants Face Catastrophe: 150,000 Out of Work, 40% Restaurants Closed; Leadership Implores Elected Officials for a “Recovery Fund”

COLUMBIA, MD – April 21, 2020 – Maryland restaurants are facing a catastrophe with nearly 150,000 restaurant employees out of work and 40 percent of all restaurants out of business, according to the Restaurant Association of Maryland, which represents the industry.

The trade association and its parent, the National Restaurant Association, are calling for federal elected officials to authorize a targeted relief plan that includes a $240 billion Restaurant and Foodservice Industry Recovery Fund to help the nation’s second largest private sector employer survive the pandemic that has likely plunged the industry into a recession.

“Restaurants have been devastated by the pandemic and are the most impacted industry in America,” said Marshall Weston, President and CEO of RAM, which is based in Columbia, Md. “Our state and federal governments have made an attempt to aid small business, but their efforts have not helped most restaurants.”

“Restaurants across Maryland are suffering,’” Weston continued. “The margins in the restaurant industry are razor thin to begin with, and this prolonged state of emergency has put restaurants owners on the brink of permanent closure and their employees wondering if they will have a job to return to. Government must act immediately.”

The National Restaurant Association has developed a “Blueprint for Recovery” calling for six steps to help save the restaurant industry. They include:

•  Enact the Restaurant and Foodservice Industry Recovery Fund (RFIRF): The $240 billion RFIRF compensates restaurants for 1) government-ordered closures, 2) reopening “start-up” capital to meet massive challenges of reorienting the restaurant space, restocking inventory, and supplying the workplace with new safety equipment, and 3) rehiring and retraining the workforce. Any restaurant entity that has experienced a reduction in sales revenue of 25% or more due coronavirus can apply to the account, which would be administered by the U.S. Department of the Treasury.

• Replenish funding and fix the structural issues of the Paycheck Protection Program (PPP): Ensure restaurants can select their loan period after government restrictions end, revise loan forgiveness requirements, and restore the 10-year loan term written in the CARES Act.

• A “Healthy Restaurants” Tax Credit or Grant Program: Federal support to help restaurants modify physical facilities to accommodate continued social distancing, enhance sanitization and employee education, and expand use of personal protection equipment and disposable products when employees interact with both customers and each other.

• Provide federal relief for employer’s share of unemployment insurance: Temporary tax forbearance for employers should be considered from the Federal Unemployment Tax Act (FUTA).

• Enact the “SNAP COVID-19 Anti-Hunger Restaurant Relief for You Act of 2020” (SNAP CARRY Act): Legislation from Rep. Panetta (D-CA) and Senator Murphy (D-CT) expands the Restaurant Meals Program to serve all SNAP participants during the crisis and gives the U.S. Department of Agriculture ability to temporarily waive requirements for states and restaurants to quickly participate.

• Increase funding for Economic Injury Disaster Loans (EIDLs): Restore $50 billion in needed appropriations for organizations in economic distress, including those that need to access a second EIDL.

“Our elected officials must act quickly,” Weston said. “Without immediate action the losses in Maryland and other parts of the country will be permanent. The longer we wait the more damage will be done reducing the chances that the industry can be saved.”

About the Restaurant Association of Maryland: 
The Restaurant Association of Maryland (RAM) is a statewide trade association operated for the purpose of helping Maryland restaurants succeed. For over 75 years, RAM has been run by restaurateurs working for the benefit of its members and the restaurant industry as a whole. RAM leads and supports the foodservice industry in Maryland by showcasing member restaurants, offering programs that reduce operating costs and advocating for the interests of foodservice businesses. For more information visit marylandrestaurants.com.