How stimulus money is helping restaurants during COVID-19
Yahoo Finance’s Sibile Marcellus joins Seana Smith to break down how the $2 trillion stimulus package will help the restaurant industry amid the coronavirus pandemic.
Video Transcript
SEANA SMITH: Well, the coronavirus is taking its toll on restaurants. We have the National Restaurant Association estimating that sales will decline by $225 billion over the next three months. We have Sibile Marcellus tracking this story for us. And Sibile, I know you reached out to the New York State Restaurant Association, just in terms of asking them how that $2 trillion fiscal relief bill will help the New York State restaurants. What did you find out?
SIBILE MARCELLUS: That's right, Seana. So tons of small businesses around the country are waiting for tomorrow. That's the first day they'll be able to access the $349 billion in loans set aside for them in that $2 trillion fiscal stimulus package. But I was particularly interested in knowing how restaurants are going to be able to benefit from those loans.
And just to remind you, Seana, restaurants nationwide have lost $25 billion in sales. Restaurants in New York have lost $1.9 billion. Now I spoke to the New York Restaurant Association, and they said that those funds are, of course, much-- very much welcomed by the restaurant community.
Some restaurants couldn't wait. They had to shut their doors, but others that were struggling with takeout and delivery will definitely benefit from having them. Said that right now, they're very cash strapped, practically no revenue coming in. So what they've been doing is hanging on to the cash that they do have, and that's what they're going to do once they receive these loans.
In terms of keeping employees on the payroll, we saw the numbers this week. The weekly jobless claims jumped to 6.6 million from 3.3 million the week before. And this fiscal stimulus, the loans are going to be available starting to-- well, they'll be able to apply for it starting tomorrow.
That will help them keep more workers on their payroll. And restaurants are saying that that means that it will help them. Moving forward, they won't have to seek new talent. They will already have them there. And they'll be ready to go once the economy reopens.
SEANA SMITH: Sibile, is there any concern there just in terms of that restaurants may not be able to get exactly what they need in order to survive, though?
SIBILE MARCELLUS: Yes, it's too early to tell exactly how this is all going to pan out. But imagine, I mean, so many restaurants, so many small businesses all going to their local bank, so it's going to need some coordination. But we'll keep tracking it and see if they actually do get the money in the time they need and that they're promised.
SEANA SMITH: All right, Sibile, thanks so much.
