Worcester Business Journal

wbjournal.com | April 26, 2021 | Worcester Business Journal 25 Our recovering economy needs a healthy restaurant industry V I E W P O I N T E D I T O R I A L O n April 19, the U.S. Small Business Administration announced the implementation of the latest fed- eral stimulus to help an important sector survive and recover from the coronavirus pandemic: the $29-billion Restaurant Revitalization Fund. e program came as part of March's American Rescue Plan, the third major federal bailout plan since the pandemic began, whose $1.9-trillion worth of programs are de- signed to kick the economy in high gear aer more than a year of loss and stagnation. While it's too soon to tell how the Restaurant Revitalization Fund will impact the hospitality industry in Central Mass., this program could not be more welcome to an industry still ravaged by the regulations meant to slow the spread of COVID-19, particularly those limiting capacity and operating hours. Much like the $669-billion Paycheck Protection Program from the SBA, which helped businesses of all kinds with for- givable loans when uncertainty was ravaging the global economy, this new specific effort will help an industry important to the community. e Massachusetts Restaurant Association has no idea how much of the $29 billion the state's restau- rants will receive from the new program, but much like with the PPP loans, President & CEO Bob Luz expects the demand will be high. Luz said anyone who is eligible will apply, as the restaurant industry still remains near the back of the pack among those in recovery from the pandemic. Demand will be so high, Luz expects the federal government will have to create a second round of funding, as was the case with PPP. Unlike the first two federal government bailout packages, which passed with bipartisan support, the American Rescue Plan faced unanimous opposi- tion from Republicans in Congress, some of whom balked at the high price when parts of the national economy were already in recovery. Yes, the price tag is high, but this round of funding is vitally important to making the economy whole again, particularly restaurants. e hospitality industry is filled with small businesses who oen employ a handful of peo- ple and are important to their communities, offering high-profile and well-known locations for people to gather and rally around. Restaurants oen are the first businesses providing a path to ownership for immigrants. As an SBA-administered program similar to the PPP effort, there will again be a crit- ical role played by our local and regional banks in working with restaurant owners to help secure these needed funds. Central Mass. is a series of tightly knit communities, and every restaurant owner qualify- ing for this new federal program should receive any necessary help in applying. Central Mass. has increasingly become known as a region full of great restaurants. Making sure restau- rants make it to the other side of this pandemic will be critical for our community, and our economy. The above Editorial is the opinion of the WBJ Editorial Board. The Viewpoint column, the A Thousand Words cartoon, and the Word from the Web commentary represent the opinions of their authors and do not necessarily reflect the views of WBJ or its staff. WBJ welcomes letters to the editor and commentary submissions. Send them to bkane@wbjournal.com. M assachusetts is among a growing number of states with legalized cannabis products for both me- dicinal and recreational use. Indeed, all six New England states have some type of legalized cannabis – either medical, recreational, or both. As a result, this is a growing industry in our region's ever-evolving economy. However, because marijuana is still classified as an illegal controlled substance under federal law, these legitimate, licensed businesses are unable to open bank accounts or access certain services — such as insurance policies — key to any businesses stability and success. Instead, they have no choice but to op- erate as cash only-businesses, and thus incur a whole host of associated risks. ey are susceptible to the, money laundering, tax evasion, and other safety concerns. At the same time, their customers — many of whom are purchasing cannabis to alleviate a wide range of medical issues — are limited in payment options, and local financial institutions are missing out on new business. Fortunately, there is legislation pending before Congress to address this problematic discrepancy between state and federal law. e Secure and Fair Enforcement Banking Act of 2021 would establish protections for depository and insurance institutions to provide financial services to legal cannabis-related business, as well as their service providers. is bipartisan proposal is gaining momentum on Capitol Hill. e legislation was introduced during the previous session of Congress and was passed by the House of Representatives in September 2019. Unfortunately, it was not taken up in the Senate. It was recently re-introduced in both the House and Senate and, just last week, the House of Representatives passed the bill by a vote of 321-101, with all nine Massachusetts representatives voting in support. In the Senate, Senators Ed Markey and Elizabeth War- ren join 30 of their colleagues in co-sponsoring the bill. Gov. Charlie Baker has also expressed concern about the cash-only nature of legal cannabis, and joined a bipartisan group of governors urging Congress to pass this legislation. e New England Council, the nation's oldest regional business association, has endorsed this bill, and wrote to our region's Congressional delegation just a few weeks ago to express our concern about the current situation and support for the SAFE Banking Act. Regardless of your stance on legal marijuana, the fact is that in Mass. and many other states, it has in fact been legalized and represents a new growth industry. We must now take the necessary steps to ensure the appropriate business supports are in place to ensure this new sector's success, and to ensure that it is able to operate in a safe, secure manner. We are grateful for the House's swi action on this commonsense proposal, and urge the Senate to follow suit as soon as possible. James T. Brett is the president & CEO of e New England Council, a regional alliance of businesses supporting economic growth and quality of life in New England. BY JAMES T. BRETT Special to the Worcester Business Journal James T. Brett W W A T H O U SA N D WO R D S B Y R A M Ó N L . S A N D O V A L Congress must take action on cannabis banking bill

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