HB 1004 – Small Business Restart Grant Program
Authored by Rep. Shane Lindauer (R-Jasper)
Co-authored by Rep. Sharon Negele (R-Attica) and Rep. Alan Morrison (R-Brazil)
Establishes the Hoosier hospitality small business restart grant program to provide grants to eligible entities to accelerate economic recovery from the impacts of the COVID-19 pandemic. Also creates the small business restart grant fund. Provides that the Indiana Economic Development Corporation (IEDC) administers the program and fund. Provides criteria for grants. Allows the IEDC to award grants from the fund. Makes a $30 million appropriation.
Chamber position: Support
The latest: On Wednesday, the bill was voted out of the House Ways and Means Committee unanimously (23-0).
Indiana Chamber action/commentary: The hospitality industry has unquestionably suffered most from the COVID-19 pandemic. As of September 2020, one in six restaurants had shuttered due to the pandemic. In December, another 500,000 hospitality jobs were lost nationally bringing the total to 3.9 million, or down by approximately 23%. In Indiana, 20% of restaurants are now permanently closed and 250,000 Hoosiers in the restaurant industry alone have lost their jobs.
In testimony, the Indiana Chamber argued that this bill will help small businesses in need of bridge funding until enough people are vaccinated and life returns closer to normal. Furthermore, we pointed out that eight in 10 restaurant owners started in entry-level industry positions and their businesses are in jeopardy through no fault of their own. Further, the way that many small hospitality businesses are funded (e.g., credit cards, mortgages, etc.) means that when their business closes, it results in complete and utter financial ruin.
Through this bill, eligible businesses may receive up to $10,000 per month with a maximum total grant amount of $50,000. This may not be enough, but every little bit will help.
Resource: Adam H. Berry at (317) 264-6892 or email: aberry@indianachamber.com
