By QUINTON SMITH/YachatsNews.com
A $28.6 billion federal relief program designed to make up restaurant losses during the coronavirus pandemic has dropped $9.36 million into the bank accounts of 40 Lincoln County establishments.
The restaurants – ranging from the Mo’s seafood chain based in Newport to beer house in Lincoln City to a small restaurant in Yachats – were part of the $1.9 trillion American Rescue Plan.
The Small Business Administration awarded the grants last Friday to 105,000 restaurants across the United States, simultaneously announcing it had run out of money for the program and turning down another 265,000 applications. The agency told unsuccessful applicants in an email that it was unable to fund all qualified applications because of “overwhelming demand.”
More than 370,000 business owners applied for more than $75 billion in funding, nearly three times what the program had available. Some 105,000 businesses were approved for grants, which averaged just over $272,000.
In Oregon, the SBA reported that 4,930 businesses applied for the grants, seeking a total of $1.2 billion. Some 2,336 establishments ended up collecting more than $500 million.
College helps get word out
Restaurants and bars were among the hardest-hit businesses in the pandemic, with many forced to close for months. They were one of two industries — along with live-event businesses like music clubs and movie theaters — for which Congress created special relief funds.
Owners could apply for grants intended to offset their losses over the past year. Among other details, they had to show on the form submitted to the SBA the difference in their income in 2019 and 2020.
“Whatever the difference is the grant will make it up – we’re going to make you whole,” Dave Price, director of the small business assistance program at Oregon Coast Community College, said about the intent of the federal program.
The college’s program helped advertise the opportunity in Lincoln County and helped dozens of restaurants apply for the grants. Price said the college stressed the need for businesses “to get their ducks in a row” so they could be among the first in line when applications opened May 3.
“We knew there was going to be strong demand,” Price said. “It was a race and many of our clients were ‘Johnny on the Spot’.”
He said the disappointing part of the SBA’s announcement last week is that it did not tell businesses which did not get the grant there place in line or if there were problems with their application.
Rep. Earl Blumenauer, D-Ore., who championed the initial bill, has introduced legislation with a bipartisan group to replenish the fund with another $60 billion.
The SBA said last week it would hold onto the applications in the off-chance Congress allocates additional money and pledged to process those requests in the order in which they were received. But the program was scheduled to be “disabled” Wednesday, meaning applications will no longer be accepted or handled otherwise.
15 Newport restaurants
In Lincoln County, Newport had the most restaurants – 15 – receive grants totaling nearly $5.7 million.
The largest grant in the county went to Newport Pacific Corp., which runs Mo’s Seafood restaurants in Florence, Lincoln City, Astoria, Cannon Beach, Seaside and Portland International Airport.
Other top grant recipients in Newport included Local Ocean Seafoods, $720,760; Chowder Bowl at Nye Beach, $439,419, Newport Steak and Seafood, $432,015, and Sylvia Beach Hotel, $327,207. Mo’s Enterprises, which runs the two restaurants on the Newport bayfront, received $121,906.
In Yachats, Yachats Brewing received $432,165, Bread & Roses Bakery, $106,017; Green Salmon Coffee Co., $105,027; Ona Restaurant, $49,190; and Beach Street Kitchen, $48,747.
There were four restaurants in Waldport which received grants, the largest going to the owners of Hilltop Bistro at $369,595.
In Depoe Bay, Tidal Raves received $929,948 and Gracie’s Sea Hag got $299,594.
Lincoln City had 10 restaurants receive grants totaling $571,862, the most — $122,349 – going to Granberg Hospitality, which operates Olde Line Lanes, a restored bowling alley and pizza restaurant. The smallest grant in Lincoln County — $6,299 – went to Black Squid Beerhouse in Lincoln City.
In Toledo, Mugglys bowling alley and restaurant received $149,761.
In Gleneden Beach, Bayside Hospitality received $285,897.
