Maine hospitality industry expects boost from federal stimulus package

Photo / Renee Cordes HospitalityMaine said federal stimulus packate is "a step" toward helping Maine's restaurant and lodging businesses, which have been paralyzed because of the COVID-19 outbreak.

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By Staff

Maine's hospitality sector is counting on the federal emergency stimulus package, expected to be approved by the U.S. House of Representatives today, to help shore up the state's paralyzed industry.

The $2 trillion stimulus package aimed at relieving some of the economic impact of the COVID-19 pandemic includes $377 billion in guaranteed loans to small businesses and was passed by the U.S. Senate Wednesday. It is "a step" toward helping ease the strain on the state's restaurants and lodging businesses, said HospitalityMaine, which represents the industry in the state.

The program can put employees who've been laid off because of rules prohibiting dining-in at restaurants back onto payrolls through loans, grants, unemployment assistant and business interruption and disaster insurance. “The beauty of this is it covers employer and employee at the same time,” said HospitalityMaine's CEO Steve Hewins.

Thousands of room nights and restaurant reservations were canceled over the past few weeks, as well as advanced room reservations. Walk-in traffic dwindled to nothing, HospitalityMaine said. Many restaurants have had to close or are losing revenue by just serving takeout.

The organization, which represents more than 1,000 members in the state's restaurant and lodging industry, rallied representatives from 200 restaurants, inns and tourism-related businesses to write to U.S. Sen. Susan Collins, R-Maine, urging relief.

Greg Dugal, the association’s government affairs officer, worked with Maine’s legislative leaders in the Senate, specifically Collins’ office, to pass the emergency measure, the release said. Collins is a key player on the Bipartisan Small Business Task Force, and pushed for emergency economic relief for Maine's small businesses on the verge of going under, the association said.

“This landmark legislation is the lifeline that Maine’s inns, restaurants and hotels have been waiting for and will be our saving grace for the foreseeable future,” said Dugal, adding “the bill is not perfect, but it will help many Maine hospitality businesses.”

Collins said the efforts of HospitalityMaine helped get the legislation passed. The $377 billion small business economic relief plan "will help make sure that businesses that were thriving before the pandemic as well as their employees are able to make it through this crisis," she added.