Bill To Reimburse Restaurants For 'False Openings' Advances

NEW JERSEY - Legislation to reimburse restaurants, bars and caterers that spent money on supplies in preparation for indoor dining’s return was approved by a Senate committee Monday.

The bill, S-2704, sponsored by Senate President Steve Sweeney, Senator Vin Gopal and Senator Anthony Bucco, would fund the reimbursements by appropriating $30 million to the Economic Development Authority from federal block grants allocated to the state from the CARES Act. The EDA would then provide direct financial support, by way of loans or grants, according to the bill.

“The best thing the state can do for the suffering restaurant industry and its employees is to allow them to open for responsible indoor dining,” said Bucco. “Restaurants were ready to open on July 2 until the Governor changed directions. Now it’s almost two months later, and they are still closed. The owners of many establishments spent money they didn’t have, often on personal credit cards, to buy food, PPE for staff, and renovate their dining rooms to serve customers safely. The money they spent and losses they incurred, through no fault of their own, added insult to injury and restaurants deserve to be compensated from the CARES funding for losses they incurred.”

Restaurants were set to reopen for indoor dining early in July, but the authorization to return to business was later reversed. Many restaurant owners said that they were out thousands of dollars due to the change.

“This false start severely affected the food establishments that hired additional staff and spent money on equipment in anticipation of reopening,” said Sweeney. “These businesses are among the hardest hurt by the pandemic and they are at risk of permanently going out of business. This will help reimburse the restaurants, bars and catering businesses that have followed the rules to protect the public’s health but are now paying the price.”

President of the NJ Restaurant and Hospitality Association Marilou Halvorsen said restaurants have been devastated by the COVID-19 pandemic.

"In an industry known for its tight profit margins and reliance on steady, consistent business, the shutdown has already led to several of our members closing their doors," she said. "For many owners already in a precarious position, this false start on indoor dining after they had paid for food, had their restaurants cleaned and hired employees has placed their livelihood in even greater jeopardy. This is a welcomed bipartisan bill that will help our restaurants survive the continued ban on indoor dining as well as prepare for their eventual reopening."

Thanks for reading! Learn more about posting announcements or events to your local Patch site. Have a news tip you'd like to share? Or maybe you have a press release you would like to submit or a correction you'd like to request? Send an email to russ.crespolini@patch.com

Subscribe to your local Patch newsletter. You can also have them delivered to your phone screen by downloading, or by visiting the Google Play store.