Daviess County Fiscal Court has approved a relief fund of up to $250,000 for local restaurants and bars affected by the COVID-19 pandemic. The funding will only be eligible for restaurants and bars outside of Owensboro City limits and that are not publicly traded companies.
Judge-Executive Al Mattingly said up to $250,000 will be made available to as many as 30 restaurants and bars in Daviess County, including any in the City of Whitesville. Each business will be eligible for $5,000 in assistance.
The money will come from Fiscal Court’s economic development fund.
“They have employees and, like most small businesses, they are worried about their employees, so they are trying to gather revenues,” Mattingly said. “I’d propose that a portion of our economic development fund be allocated to provide assistance.”
David Smith, director of legislative services, provided some statistics in relation to restaurants and bars that have been impacted by shutdowns related to COVID-19.
According to Smith, those businesses have been forced to completely shut down to inside business for 25% of the year. So far, they have only been allowed to open at 50% capacity for 37% of the year, while another 11 days they were only open at 33% capacity.
“I didn’t have a clue that it was that serious — that it was that harshly they’d been hit,” said Commissioner Charlie Castlen.
Though they were open at full capacity January through March, Smith said for most dining establishments those three months typically result in their lowest revenue streams of the year.
“As a member of the economic development board, I think the board would agree to this level of spending,” Smith said. “We do not generally spend this money on what’s referred to as secondary jobs. Some of these businesses aren’t going to exist [without it].”
Rural mom-and-pop restaurants would be especially vulnerable to closing without some financial assistance, he added.
“This fund is patterned off the state’s rules. If you’re a publicly traded company, you aren’t eligible,” Smith said. “This is geared toward a mom-and-pop enterprise — 25-30 businesses could possibly tap into this fund.”
The state created the Team Kentucky Food and Beverage Relief Fund, which is a $40 million fund that will give $10,000 per eligible bar or restaurant. It was created when additional restrictions were levied against bars and restaurants earlier this month. Businesses wishing to apply can do so here.
Mattingly said while the money from the local relief fund may not create jobs, it would retain them.
According to Mattingly, restaurants within Owensboro City limits were not included in the County’s relief fund for a variety of reasons. While City businesses did pay County property taxes, they paid City occupational taxes and net profit license fees.
But money was the main reason this relief could only apply to County businesses, Mattingly said.
“The number one reason we didn’t [offer this] to City restaurants and bars is, we didn’t have enough money to do it,” he said. “It’s a rather large list [within the City]. The Gov. has made it so that restaurants can apply and qualify for up to $10,000. City businesses also had an opportunity to apply for and receive City-funded COVID-19 relief funds.”
However, Whitesville businesses can apply for assistance.
Restaurants will have to provide a business license, liquor license and health department certification to receive assistance. No restrictions will be placed on how the funds are spent.
Forms will be made available on Fiscal Court’s website Friday morning. Businesses must mail copies of licenses they hold to the Daviess County Courthouse. A W-9 form must be filled out and returned as well.
Restaurants and bars will have until Dec. 21 at midnight to apply.
