Congress’ $2 trillion coronavirus package could be a win for the retail, restaurant and hospitality industries, including large movie theater chains. The rescue package could mean access to emergency capital through the plan’s proposed $500 billion in loans and assistance for larger companies and $350 billion in aid for smaller businesses.
The aid comes with some strings for larger companies, including bans in stock buybacks and limitations on top executive bonuses. The Treasury Department would have to disclose the terms of loans or other aid, and a new treasury inspector general would oversee the lending program.
Struggling restaurant and hospitality chains can use the cash infusion, not only to keep employees on payroll, but to adjust their operations to account for new safety standards and methods of sale while complying with social distance guidelines. Restaurants and hotels have been required to completely change their standard operating and customer service provisions while other industries, like the movie exhibitors, have had to shut their doors to protect their communities. Access to emergency capital can help our restaurant and hotel industries start planning and preparing for re-opening, as they are able to bring employees back to work and refocus investment in their product supply chains. The benefits of the rescue package will trickle down to all those industries that work with restaurants, movie theaters and hospitality venues, including their food and alcohol beverage vendors and other suppliers. The losses to their suppliers and vendors will be reduced, as large and small businesses begin to restock and move toward commercial normalcy.
