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May 29, 2020

CT Restaurant Association head backs PPP flexibility bill

Photo | Contributed A Bertucci’s restaurant.
By Sean Teehan

A U.S. House bill that would extend the timeline for which businesses must use stimulus funds would be a boon for Connecticut's struggling restaurant sector, but needs to pass soon, industry leader Scott Dolch said.

Dolch, executive director of the Connecticut Restaurant Association, said Friday morning that he was on his way to a meeting with U.S. Sen. Richard Blumenthal, where he intended to urge the senator to work toward the fastest possible passage of the House bill, which is called the Paycheck Protection Program Flexibility Act.

Scott Dolch, Executive Director, Connecticut Restaurant Association

"We're pushing [passage of the bill] hard in the Senate right now," Dolch said, referring to the Connecticut association and its counterparts in the National Restaurant Association. "This needs to happen now."

The House bill, which passed nearly unanimously on Thursday, includes several elements especially helpful to Connecticut restaurants, which are only able to offer outdoor dining for now. Before May 20, they were limited to takeout orders only. 
One measure would extend the time businesses have to spend stimulus funds they received from eight to 24 weeks. Under current rules, businesses that don't use funds within eight weeks must return the remainder, or pay it back like a loan. 

The bill would also change an existing rule that businesses must use 75% of their PPP money on payroll and 25% on other costs. The bill changes that to a 60-40 split. 

"I think the changes that are there make a lot of sense," Dolch said. "While it's not perfect, it's a huge help."

On the state level, Dolch said, fewer than 25% of restaurants in Connecticut opened for outdoor service when Gov. Ned Lamont began allowing outdoor dining at restaurants. However, he's encouraging restaurants to find ways to offer outdoor dining, because even when indoor service is allowed once more, there will likely be capacity restrictions.

Dolch said the restaurants that have opened for outdoor service have shown an ability to maintain sanitary standards, which bodes well for their ability to provide safe indoor service.

"We're really pleased with the work that's been done to get us to this point, with outdoor dining," Dolch said, but he noted that rain has already prevented open restaurants from operating on several days. "We still need to make that push to get an indoor date."

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