IRA Secures $50M in Restaurant Grants in Budget
Saturday, April 9, 2022
Illinois General Assembly Dedicates $50M for Restaurant Grants, Waives Retailer Liquor License Fees in Budget
As you are aware, the IRA has continued to press for additional funding for our industry at the state and federal level. We are pleased to report that the Illinois General Assembly has approved the Fiscal Year 2023 state budget, which includes $50 million in dedicated grants for restaurants and taverns and a waiver of state retailer liquor licenses fees for one year. Fee waivers are for retailer liquor licenses that expire on or after July 1, 2022, and on or before June 30, 2023.
The IRA thanks leaders in the House and Senate - including Rep. Mike Zalewski (23rd) and Sen. Sara Feigenholtz (6th) - for appropriating this crucial grant funding for our industry, which will help restaurants in every corner of state on a path to recovery. Thank you to everyone that engaged in the IRA's call to action, met with legislators, and shared your stories to help secure this enhanced financial support for restaurants and their employees.
Provisions of the grant program include:
- Eligible entities must be a restaurant or tavern in the state of Illinois.
- House Majority Leader Greg Harris (13th) noted on the House floor that the legislative intent is to also include entities eligible under the federal Restaurant Revitalization Fund (RRF) program, including: caterers, food trucks, brewpubs, and more.
- The IRA will work to ensure the list of eligible entities aligns with RRF during the upcoming rulemaking process.
- The restaurant or tavern must have 50 or fewer employees.
- The applicant must have not received financial assistance pursuant to the federal Restaurant Revitalization Fund Program; the state Back to Business Grant Program or the Business Interruption Grant program; or any other local or state program providing more than $10,000 in grants or forgiven loans since April 1, 2020.
- Applicants may have received federal Paycheck Protection Program (PPP) funding
- The state will award a one-time grant in an amount of up to $50,000 to each eligible entity.
- Grant award amounts will be determined based on the eligible entity's reported losses during a timeframe determined by the state.
- Grant funds can only be used for the following purposes:
- Payroll costs, paid sick leave, employer contributions to employee health care costs, payments of principal or interest on any mortgage obligation, rent payments, including rent under a lease agreement, utilities, maintenance, and operational expenses.
Click here to read the legislation. The framework of the Restaurant Employment and Stabilization Grant Program can be found on pages 42-45. The IRA will work in the coming weeks with state officials to ensure the rules and application procedures for this program are rolled out in a streamlined and timely manner. Read more from Chicago Tribune.
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