HB 1004 (Small Business Restart Grant Program) was approved unanimously by the Senate Appropriations Committee Thursday.
This bill has full support of the Indiana Chamber and the potential to be fast tracked for passage.
Essentially, HB 1004 reopens the state’s restart grant program which closed in late January. The headline is that eligibility is for any Hoosier business with $10 million or less in annual revenue (in 2019), less than 100 employees, was profitable and incurred a monthly revenue loss of at least 30% compared to the same month in 2019.
The hospitality industry has unquestionably suffered most from the COVID-19 pandemic. As of September 2020, one in six restaurants had shuttered. 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 committee testimony, the Chamber declared that this bill would help small businesses in need of bridge funding until enough people are vaccinated and life returns closer to normal. Too many of these 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.
The Chamber also cited its 2020 workforce survey, noting that 40% of businesses that reduced employment levels due to the pandemic are retraining and multi-tasking employees. These funds will be used to help with these training efforts and should not be considered purely “revenue replacement” grants.
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. And with the tremendous support of lawmakers and in recognition of the need, there is a real possibility more federal money – from the CARES Act or new stimulus – or state funding will go into the restart grant program.
