The app may quickly run out of cash.
Over 186,000 restaurants bombarded the national authorities with programs for cash from the first two weeks of a program setup to ameliorate the effect of the coronavirus pandemic, '' the White House said Wednesday.
President Joe Biden intends to deliver comments Wednesday afternoon on the Restaurant Revitalization Fund, launched on Monday within this $1.9 trillion COVID-19 relief package that he signed into law almost two months back, as a business group cautioned the fund's fame may make it immediately exhaust its $28.6 billion in financing.
Before Wednesday -- Cinco de Mayo -- Biden made an unannounced trip to a taqueria from Washington that was given cash from a pilot edition of the restaurant finance, in addition to in the Payment Protection Plan -- the national government's signature plan for supplying businesses with pandemic-related aid within the last year. He explained he arranged tacos and enchiladas.
Severely affected by the financial catastrophe unleashed by the pandemic and constraints on companies to mitigate the spread of this virus, restaurants possess within the last year become principal beneficiaries of government loans and grants to companies.
Accommodation and food services companies were the No. 1 business profiting from the most recent round of financing from the Payment Security Plan -- getting 17 percent, or $40 billion, of those loans, based on the U.S. Small Business Administration. They've received billions from different national aid programs for smaller companies.
The Small Business Administration, that oversees the Payment Security Program and the brand new restaurant finance, said Tuesday the Transaction Protection Program had eventually run out of cash -- four months sooner than anticipated -- because the government transitions to more concentrated programs.
The exact same could occur with the restaurant finance, according to the National Restaurant Association's chief lobbyist,'' Sean Kennedy.
The White House on Wednesday touted the 97,600 software it said came from companies controlled by entrepreneurs, women, socially and economically disadvantaged people, and 61,700 more from companies making less than $500,000 yearly prior to the pandemic --"representing a number of the lowest priced restaurants and pubs in the usa."
The companies may use the licenses for expenses such as payroll and lease.
The typical turnaround time"from entry to funding" would probably be up to 2 weeks, White House press secretary Jen Psaki stated Wednesday.
Psaki stated Biden was"receptive" to working with Congress to offer more funds for restaurants later on.
"There's been a massive interest in this program," Psaki explained. "And there are fantastic needs throughout the nation from these types of tiny companies, from those restaurants which are in communities throughout the nation."