COVID-19 relief for hospitality industry welcomed by business owners, Valley leaders

Mar. 10—Business owners across the Valley welcome the $2.2 million in COVID-19 Hospitality Industry Recovery Program (CHIRP) funding that will be available for restaurants, bars, taverns and pubs financially affected by the pandemic in Snyder, Union, Montour and Northumberland counties.

Northumberland County received $1,028,921, Union County received $508,814, Snyder County received $457,268 and Montour County received $206,480. Eligible hospitality industry businesses can apply for the funds on March 15.

"It's been absolutely awful (over the last 12 months)," said Bob Dressler, owner of the Pub II, Hilltop Bar & Grill and Mayberry Hospitality in Danville.

Pub II is open and Mayberry Hospitality is availble for catering in limited capacity, but Dressler closed Hilltop in December for renovations. He said he is "absolutely" applying for the CHIRP funds.

"With the change in weather the last couple days and positive cases decreasing and more vaccinations, we're seeing more people come," said Dressler. "We still have to operate within the guidelines. We're operating at 50 percent. We still have to consider social distancing, we can't serve at the bar or any alcohol after 11. All those efforts are crippling to a food and beverage operation."

SEDA-Council of Governments (SEDA-COG) is urging businesses to apply as soon as possible for the COVID-19 Hospitality Industry Recovery Program (CHIRP) grants since funds may be quickly exhausted.

Eligibility

Eligible hospitality industry businesses include hotels, restaurants, bars and taverns. These businesses must fall within eligible industry codes which include the Accommodations subsector NAICS code (721) or Food Services and Drinking Places subsector (722) found at www.naics.com/search.

Eligibility includes, but is not limited to, having fewer than 300 full-time employees; a net worth that does not exceed $15 million; a 25 percent reduction in gross receipts in 2020 compared to 2019; and be located within Centre, Clinton, Columbia, Juniata, Lycoming, Mifflin, Montour, Northumberland, Snyder, or Union counties.

Jay Seidel Jr., the owner of Front Street Station in Northumberland, said the restaurant has seen a "significant loss" in the last 12 months. Annual events and special occasions like weddings, class reunions and banquet meals have been canceled, he said.

"I'm definitely going to look into it and see if I can take advantage of it. I would say we're a good candidate," he said.

With the nicer weather, more customers are coming in. The patio is a "big draw" for people, he said.

Laurie Johnson, owner of McGuigan's Public House in Sunbury, said she received CARES Act funding last year, so she would be at the bottom of the eligibility list.

"I will probably put in for it; it doesn't hurt," she said. "If I get it, great, but there are others who didn't get it already that should get it first."

Johnson said she has been able to pay her bills throughout the pandemic.

"That's a positive," she said. "That's better than anything. There's a lot out there who can't. A lot of places are struggling worse than me."

Tom Webb, the owner of Spyglass Ridge Winery outside Sunbury, said the Three Beards Brewery was set to open last year but the pandemic stopped it. He said he is not sure whether the brewery would qualify for the grant.

"I think we could apply," said Webb, noting the brewery sold beer at concerts and festivals but didn't have a physical location for customers. "We would look into it. We're investigating all avenues. Just like any other business, it was massively detrimental to us."

How to apply

Businesses can apply at the Community Giving Foundation's website at www.csgiving.org from March 15 until the funds are exhausted or June 15. Grants will range from $5,000 to $50,000. Funds will alleviate revenue losses and pay eligible operating expenses due to the COVID-19 pandemic.

SEDA-COG will receive the applications and determine eligibility and grant amounts. SEDA-COG also will disburse the funds to awarded businesses.

Priority will be given to businesses that did not already receive COVID relief funds; that were subject to closure following the disaster emergency declared by Gov. Tom Wolf on March 6, 2020; or had more than a 50 percent reduction in gross receipts from March 31, 2020, to Dec. 31, 2020, compared to the same time period in 2019. For a full listing of eligibility requirements and prioritization guidelines, visit www.csgiving.org.

The grant program was created from Act 1 of 2021, which was passed Feb. 5. Statewide, it provides $145 million in funding assistance to the hospitality industry businesses adversely affected by the COVID-19 pandemic through the state Department of Community and Economic Development (DCED).

Much-needed lifeline

Leaders across the four counties, in a prepared released from SEDA-COG, and in regular meetings said the new grant program is a much-needed lifeline to businesses during this time.

"Our hospitality industry has been hit hard by the pandemic's impacts, so this new grant program could greatly benefit our county," said Northumberland County Commissioner Chairman Sam Schiccatano. "We hope many businesses apply to help give them more breathing room during these difficult times."

Montour County Commissioner Ken Holdren said the county is thankful for the additional funding program.

"Time is limited for these funds, so we encourage businesses to apply as soon as they are able," Holdren said.

The way the state wrote CHIRP, Holdren said, was that the economic entities could charge up to $500 per application.

"We didn't want to have that much in administrative costs," Holdren said. "We wanted it to go directly to the impacted entities."

SEDA-COG originally came to Montour County with an offer of $300 per application, not to exceed $5,700, which is just under 3 percent of the total grant.

Due to added responsibilities, SEDA-COG requested an increase to $340 per application, with the total not to exceed $6,610. That number now would represent 3.2 percent of the total CHIRP grant to Montour County.

Montour County approved the increase during their normal meeting Tuesday's meeting.

"Last summer our administrative cost was 1 percent and now it will be 3.2 percent," Holdren noted. "So my point is that the state mandate hurt our ability to put the most money into the hands of the small businesses we are trying to help."

Snyder County Commissioner Joe Kantz said the county also will pay $340 for each approved grant application after requesting a lower fee "so we could offer more to the businesses. I think it's fair."

Kantz also warned that even though the application deadline is June 15, grant funds may be exhausted well before then.

"We urge the hospitality industry businesses in our county to apply quickly," said Kantz. "This grant is a welcome boon to our hurting local economy."

Snyder County has contracted with the SEDA-Council of Governments to manage the grant, including determining eligibility and amounts, in partnership with Harry Mathias, a former Central Columbia Schools superintendent.

Union County Commissioner Preston Boop said, "It's been a long year and we hope this can alleviate the worst pressure from these businesses."

SEDA-COG is managing

The counties have contracted with SEDA-Council of Governments (SEDA-COG) to manage the available funding. SEDA-COG will receive the applications, determine eligibility, grant amounts and will disburse the funds to awarded businesses.

Mike Fisher, SEDA-COG assistant executive director, said SEDA-COG is honored to partner with its counties on this effort to help the local hospitality industry.

"We are honored to be able to further assist our counties in this way. We know that the economic effects of the pandemic have crippled our local hospitality industry, so we trust this will alleviate some of that pain. This pandemic has left gaping holes of need and we are here to help our communities and businesses meet those needs," Fisher said.

For a full listing of eligibility requirements and prioritization guidelines, visit www.csgiving.org.

Daily Item reporters Marcia Moore and Rick Dandes contributed to this report.