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Asheville Restaurant Group Calls on North Carolina Elected Officials to Stop Harming the Hospitality Industry

Asheville Restaurant Group Calls on North Carolina Elected Officials to Stop Harming the Hospitality Industry

ASHEVILLE — The Asheville Independent Restaurant Association is calling on North Carolina elected officials to act now to save the local economy before an imminent collapse.

On October 23, Elizabeth Button, AIR board chair, released a letter on behalf of the nonprofit (501C-6) organization that represents more than 150 restaurant members outlining the impact on restaurants and small businesses in Western North Carolina. and the risks if they do not receive additional funding, resources and flexibility for existing emergency loan payments amid recovery from Tropical Storm Helen.

“Decisive, timely and bold action is needed to avoid an economic maelstrom that will cripple Western North Carolina and develop into a financial crisis for the state and region,” the letter said.

Tropical Storm Helen swept through the region at the start of “leaf season,” when businesses traditionally receive the most revenue from tourism ahead of the slower winter months.

AIR cites Federal Emergency Management Agency data showing that 43% of small businesses affected by a disaster never reopen, and another 29% close within two years of the event.

AIR called small businesses and independent restaurants “the lifeblood of Buncombe and surrounding counties,” saying the food and beverage industry is the largest contributor to the travel and hospitality sector, employing 14,500 people.

AIR cited data from a Longwoods International and Tourism Economics study conducted on behalf of Explore Asheville that found visitors spent $2.97 billion in Buncombe County in 2023, or roughly 20% of its total annual economy.

AIR has requested immediate measures to assist in recovery:

  • A one-year suspension of payments on emergency disaster loans (EIDLs) distributed amid the COVID-19 pandemic, without accruing interest.
  • For Congress to pass an emergency supplemental appropriations bill and increase FEMA’s share of spending to 90% for all categories when it returns on November 12 – without waiting until the December annual appropriations bill or later.
  • Supplements state and federal unemployment benefits and tax breaks to allow businesses to continue paying workers.

“If our small businesses and restaurants fail, the consequences will be widespread,” the letter said. “In addition to the loss of revenue to our rural and urban communities, as well as the depletion of state sales taxes and ABC revenue, a staggering number of our workers will have no choice but to leave the region in search of work; Anecdotal evidence suggests this already. A depleted workforce will significantly hamper our region’s economic recovery for years to come.”

On October 16, Gov. Roy Cooper issued an emergency order increasing unemployment benefits from a minimum of $350 per week to a maximum of $600 per week.

On October 23, Governor Cooper asked the North Carolina Legislature to provide $3.9 billion in state funding for Tropical Storm Helen relief and recovery to begin rebuilding critical infrastructure, homes, businesses, schools, and farms damaged during a hurricane. However, the General Assembly approved a much smaller amount—approximately $644 millionwhich now heads to the governor’s desk. Earlier this month, lawmakers approved the first round of Helena relief funding $273 million.

Cooper proposed a $650 million package to address economic loss and physical damage to non-farm businesses and nonprofits, and to revive the Business Recovery Grant Program, introduced during the COVID-19 pandemic to jump-start the state’s economic recovery.

“Small businesses in western North Carolina need direct help right now as they decide when and if they will reopen,” Jordan Monaghan, deputy communications director for Gov. Roy Cooper’s office, said in an email to the Citizen Times on 24 October. “It is good that the Legislature provided some lending opportunities today, but it is disappointing that they did not provide grants for small businesses as the Governor proposed. In November, the Legislature will have another chance to provide that aid and pass a larger relief package for the Western North. Caroline”.

The governor’s office said initial damage estimates from Tropical Storm Helen reached $53 billion, about three times more than Hurricane Florence in 2018 and the largest in state history.

AIR’s letter cited the COVID-19 pandemic, Hurricane Matthew in 2016 and Hurricane Florence in 2018 as other instances where state and federal funding supported recovery.

In an Oct. 24 press release, the City of Asheville announced it has approved a reallocation of existing city resources that can be used as grants for business recovery, home repairs and rental assistance.

The city said it advocates for state and federal government resources.

Over the next two weeks, the city said it will identify and assign nonprofits to each goal and distribute grant funding to the community, including $929,000 for business rehabilitation, $1,465,000 for home renovations and $1 million for home improvement assistance. rent

Details about partner agencies, eligibility requirements, and the application process for assistance will be released in the coming weeks.

According to the city, “home repair and rental assistance funds will be used in addition to FEMA resources.”

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Tiana Kennell is a food and nutrition reporter for the Asheville Citizen Times, part of the USA Today Network. She graduated from Michigan State University and spent several years working in arts, entertainment and hospitality in Louisiana. Email her at [email protected] or follow her on Instagram @PrincessOfPage.