ASHEVILLE – Asheville Independent Restaurants Association is calling for North Carolina elected officials to act immediately to save the local economy before an imminent collapse.
On Oct. 23, Elizabeth Button, AIR Board Chair, released a letter on behalf of the not-for-profit (501C-6) organization, which represents more than 150 restaurant members, outlining the impact on Western North Carolina’s restaurants and small businesses and the risks if they do not receive additional funding, resources and leeway on existing emergency loan payments amid Tropical Storm Helene recovery.
“Decisive, timely, and bold action is needed to avoid an economic maelstrom that will cripple Western North Carolina and cascade into a fiscal crisis for the State and the region,” the letter read.
Tropical Storm Helene ripped through the region at the beginning of “leaf season” when businesses traditionally earn the most revenue from tourism before the slow-traffic winter months.
AIR cited data from the Federal Emergency Management Agency that 43% of small businesses affected by a natural disaster never reopen and an additional 29% close within two years of the event.
AIR called small businesses and independent restaurants “the lifeblood of Buncombe and its neighboring counties,” stating that the food and beverage industry is the largest contributor to the travel and hospitality sector and employs 14,500 people.
AIR referenced research data from Longwoods International and Tourism Economics, conducted on behalf of Explore Asheville, which found visitors spent $2.97 billion in Buncombe County in 2023, or roughly 20% of its total annual economy.
AIR requested immediate measures to assist with the recovery.:
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A one-year pause on Economic Injury Disaster Loans (EIDL) payments, distributed amid the COVID-19 pandemic, with no interest accrued.
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For Congress’ passing of an emergency supplemental appropriations bill and increase FEMA’s cost share to 90% for all categories when it returns on Nov. 12 ― not delaying considerations until its December annual appropriations bill or later.
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Supplements to state and federal unemployment benefits and tax credits to allow businesses to continue paying employees.
“Should our small businesses and restaurants falter, the effects will be widespread,” the letter read. “In addition to the loss of income to our rural and metropolitan communities and the depletion in state sales tax and ABC revenues, a staggering number of our workforce will have no choice but to leave the region in search of employment; anecdotal evidence suggests this already has begun to happen. A depleted workforce will significantly hamper our region’s economic recovery for years to come.”
On Oct. 16, Gov. Roy Cooper issued an emergency executive order increasing unemployment payments from a minimum of $350 per week to a maximum of $600 per week.
On Oct. 23, Gov. Cooper asked the North Carolina legislature for $3.9 billion in state funding for Tropical Storm Helene relief and recovery to begin rebuilding critical infrastructure, homes, businesses, schools and farms damaged during the storm. But the General Assembly approved a considerably smaller amount of roughly $644 million, which now heads to the governor’s desk. Earlier in the month, legislators approved a first round of Helene relief funding for $273 million.
Cooper had proposed a $650 million package to address economic losses and physical damage for non-agricultural businesses and nonprofit organizations and to revive the Business Recovery Grant Program, introduced during the COVID-19 pandemic, to expedite 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 the Office of Governor Roy Cooper, said in an email to the Citizen Times on Oct. 24. “It’s good that the legislature today provided some loan opportunities, but it’s disappointing they did not provide small business grants as the Governor proposed. The legislature will have another chance in November to provide this help and pass a more robust package of relief for Western North Carolina.”
The governor’s office reported initial damage estimates from Tropical Storm Helene reached $53 billion, roughly three times that of Hurricane Florence in 2018 and the largest in state history.
AIR’s letter referred to the COVID-19 pandemic, Hurricane Matthew in 2016 and Hurricane Florence in 2018 as other occasions when state and federal funding fueled the recovery.
In a news release on Oct. 24, the city of Asheville announced it had approved the reallocation of existing city resources that may be used as grants for business restabilization, home repair and rental assistance.
The city stated that it is advocating for state and federal government resources.
For the next two weeks, the city said it would identify and assign nonprofits to manage each identified purpose and distribute grant funding to the community, including $929,000 for business restabilization, $1,465,000 for home repair and $1 million for rental assistance.
Details on the partner agencies, eligibility requirements and application process to receive assistance will be released in the coming weeks.
According to the city, “home repair and rental assistance funds will be used to supplement FEMA resources.”
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Tiana Kennell is the food and dining reporter for the Asheville Citizen Times, part of the USA Today Network. She is a graduate of Michigan State University and covered the arts, entertainment and hospitality in Louisiana for several years. Email her at [email protected] or follow her on Instagram @PrincessOfPage.
This article originally appeared on Asheville Citizen Times: Asheville restaurant group urges NC elected officials to stop crippling of hospitality industry
