Bills To Reimburse NJ Restaurants Amid COVID-19 Pass Unanimously

NEW JERSEY - As eateries around the Garden State are preparing for the reopening for indoor dining Friday, a pair of bills have passed that would funnel money to restaurants, bars and caterers that spent money on supplies in preparation for the return of indoor dining in July only to have that authorization rescinded.

The Senate 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 loses they incurred, through no fault of their own, added insult to injury and restaurants deserve to be compensated from the CARES funding for loses they incurred.”

The Senate vote was 39-0.

“Restaurants are among the hardest hit businesses by the pandemic and they are at increasing risk of permanently going out of business,” said Sweeney. “The false start added to their problems. 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.”

In the Assembly, bipartisan legislation, sponsored by Assembly Republican Leader Jon Bramnick and Sweeney, to reimburse restaurants that had spent money on supplies in preparation for indoor dining’s return also passed the Assembly unanimously.

“We all know how difficult it has been for the restaurant business,” Bramnick said during an Appropriations Committee hearing on a conference call Monday. “There were many restaurants that spent a lot of money getting ready to reopen and unfortunately they were unable to open. Hopefully, this will support our restaurant industry. This is a bipartisan effort to keep them afloat during this difficult period of time.”

The bill, A4413, also appropriates $30 million to the state Economic Development Authority from federal block grants allocated to the state from the CARES Act.

“Restaurants have been devastated by this pandemic,” said Marilou Halvorsen, President of the NJ Restaurant and Hospitality Association. “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. 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.”

Governor Phil Murphy must sign the bills into law.

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