Hawaii business and government leaders are expressing gratitude for financial aid they soon expect to begin receiving along with residents following Wednesday’s final passage of a $1.9 trillion COVID-19 relief package by Congress.
Restaurants, bars, schools, county municipalities, Honolulu’s troubled rail project, airlines, airports, residents and other entities stand to benefit to the tune of at least $6.1 billion statewide earmarked in the legislation President Joe Biden signed today.
“We’re very excited about it,” said Victor Lim, legislative affairs liaison for the Hawaii Restaurant Association. “Our industry has been decimated so badly by this pandemic.”
Lim, who owns five McDonald’s restaurants, said the American Rescue Plan Act initiated by the Biden administration basically adopted what the national restaurant industry had sought with nearly $30 billion nationwide for small and midsized restaurants, bars and other food and beverage establishments as grants up to $5 million per establishment.
Lim said Hawaii has many smaller independent restaurants, and he encourages them to apply through the U.S. Small Business Administration.
“This is very positive for Hawaii,” he said.
More generally for businesses, the aid package includes $7.25 billion more for forgivable Paycheck Protection Program loans to small businesses and nonprofits nationally to primarily cover payroll but also expenses including rent, mortgage payments and utilities.
Neal Okabayashi, executive director of the Hawaii Bankers Association representing local banks that take applications for PPP loans overseen by the SBA, said businesses have only until March 31 to apply because the money was essentially added to a prior, still-pending second round of the loan program.
Okabayashi noted that Biden created a window reserved for only very small businesses and sole proprietors, independent contractors and self-employed individuals to apply.
“It will definitely be helpful,” he said.
About 26,000 PPP loans were made last year to Hawaii businesses, which received about $2.5 billion.
Hawaii residents who lost jobs or pay due to the pandemic are expected to be eligible for up to $152 million in housing rent assistance, according to an estimate earlier this week from U.S. Sen. Brian Schatz.
The act also will provide many individuals up to $1,400. And it would extend an existing federal supplement to state unemployment benefits, a boost up to $300 a week, into early September for people earning up to about $65,000 a year. For Hawaii, this extra unemployment benefit could total at least $575 million, according to Schatz.
Also, the first $10,200 of unemployment benefits collected last year will be tax-free for individuals earning less than $150,000.
Hawaii’s transportation industry is another major benefactor of the new federal aid.
Airports statewide are slated to receive what Schatz estimated would be $144 million to help cover expenses related to coronavirus safety procedures and support airport terminal concessions and other service providers.
Airlines in Hawaii are expected to share in $15 billion largely aimed at sustaining jobs at U.S. carriers.
Hawaiian Airlines said it is grateful for the continued federal support.
“Once the plan is signed into law, we will work to secure the funding to avoid involuntary furloughs through September, keeping us ready to scale our operations to support the travel needs of our guests, move cargo, and help drive the economic recovery in the communities we serve,” the company said in a statement.
Honolulu’s financially challenged $11 billion rail construction project is due to receive $70 million in grant money for construction, which was a welcome surprise to Lori Kahikina, the recently appointed interim CEO and executive director for the city’s Honolulu Authority for Rapid Transportation.
“(We’re) really grateful to Schatz especially, and the rest of our congressional delegation,” Kahikina said Wednesday during the Star- Advertiser’s online video program Spotlight Hawaii.
“Not to sound ungrateful because 70 million (dollars) seems so manini compared to the $3 billion shortfall, but anything we can (get) is critical,” she said.
More broadly, counties stand to receive $444 million, according to Schatz.
State agencies throughout Hawaii are projected to receive $1.6 billion, or more than enough to cover a previously projected $1.4 billion shortfall this year.
This total includes the $144 million for airports, about $391 million for public grade schools and high schools, about $98 million for higher education and $85 million for Native Hawaiian education programs, according to Schatz.
