HEROES Act 2.0: How the New Stimulus Bill Would Help Restaurant Industry

By Mary Anne R. Oct 02 2020, 01:36 AM EDT

The House of Representatives has passed a $2.2 trillion coronavirus relief bill, which includes a $120 billion assistance for small and independently-owned restaurants.

It was the first time that either chamber of Congress has passed targeted relief for the country's 500,000 independent restaurants, which account for three-quarters of the restaurants and bars in the U.S. The coronavirus pandemic has devastated the restaurant industry.

The newly approved 2,152-page stimulus bill is a revised, less costly version of the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, previously proposed in May.

"This $2.2 trillion Heroes Act provides the absolutely needed resources to protect lives, livelihoods and the life of our democracy over the coming months," House Speaker Nancy Pelosi (D-CA) said in a statement.

Aside from restaurants, Pelosi noted that it also includes new funding needed to prevent catastrophe for schools, small businesses, performance spaces, and airline workers, among others.

Called the HEROES Act 2.0, the latest version of stimulus bill also includes another round of stimulus checks and extending $600 per week unemployment benefits until January 2021.

The $120 billion relief package under the "Real Economic Support That Acknowledges Unique Restaurant Assistance Needed to Survive" (RESTAURANTS) Act was approved as part of the revised stimulus package.

It would provide restaurants, bars, food trucks, and other food-service venues with grants to cover the difference between their 2019 revenues and their estimated revenues for each quarter of 2020.

These establishments can use the grants to cover operating costs such as payroll and benefits, food, utilities, rent, and more.

The Nation's Restaurant News said that unlike some of the Paycheck Protection Program (PPP) loans, restaurants or franchises with more than 20 locations would not be eligible to receive this aid.

According to the Independent Restaurant Coalition, the revised version of the HEROES Act is the best plan Congress has enforced to protect the livelihoods of the 11 million people working in independent restaurants across the country.

"Independent restaurants are out of options, and by providing flexible grants based on revenue losses to independent restaurants who need them, Congress can ensure many businesses have a shot at surviving colder weather and getting through the pandemic," the coalition said in a report.

The updated measure will provide additional support for small businesses by improving the PPP and giving additional loans for hard-hit businesses.It also commits "targeted assistance" for the restaurant industry.

The new stimulus bill would also allocate $75 billion for coronavirus testing, contact tracing, and treatment, especially on communities of color.

Congress passed the $2.2 trillion coronavirus relief bill on Thursday evening. It passed on a 214-2017 vote, even as Pelosi and Treasury Secretary Steven Mnuchin continued to push for a last-minute, bipartisan agreement.

Many Republican members of the House have openly opposed the bill as partisan, unrealistic, and too expensive. But not only Republicans rejected it, 18 Democrats had also voted against the bill.

The HEREOS Act 2.0 would still need to pass the Senate in order to become a law.

Senate Republicans previously proposed a stimulus bill, which was dubbed as a "skinny bill." It includes an extra $600 weekly jobless aid. However, it failed to push through since Democrats blocked it in voting.