ORLA Continues to Support All Efforts Aimed at Comprehensive Decision Making
Wilsonville, OR– As recently reported, applications for the next round of Paycheck Protection Program (PPP) dollars are well underway with Oregon’s hospitality businesses eager to secure funding through their lending institutions. The following analysis combines the latest vaccination rates in Oregon against the funding timeline associated with round two of PPP.
“We feel it is incredibly important to look at the boost provided by PPP revenue for Oregon’s hospitality industry against the pace at which we are vaccinating Oregonians,” said Jason Brandt, President & CEO for the Oregon Restaurant & Lodging Association. “With 24 weeks available to use PPP, how many Oregonians are likely to be vaccinated at different intervals across that timeframe? We wanted to find out to provide one example of how crucial it is to engage in comprehensive decision making that considers our ongoing health interventions against a backdrop of Oregon’s local economies and employment opportunities.”
Small business owners in the hospitality industry continue to report the onset of PPP will not on its own save their business but without it, the next 24 weeks would have been disastrous.
“I have different small business restaurant and bar locations across Portland and PPP is going to be a difference maker in keeping most if not all of those locations in play,” said Jim Hall, Co-Owner of Independent Restaurant Concepts. “My two downtown locations, Paddy’s and the Independent, have been the hardest hit. I need our state leaders to commit to processing these economic realities and make sure their decision-making includes these types of assessments. It is near impossible to plan for the revival of these locations which brings jobs and hours back to my co-workers without a longer-term framework from state leaders.”
ORLA’s assessment took the total number of Oregonians receiving their first Covid vaccination dose as of February 15 and overlayed the daily vaccination goals promoted by the Oregon Health Authority against 24 weeks of PPP funding. The vast majority of PPP applicants are still waiting for the official transfer of funds so the model assumes the week of February 15 as the first of 24 weeks when PPP revenue can be expended within applicable rules in order for the loan to be forgiven by the federal government as a grant.
The following model shows projected timelines associated with vaccination rates as PPP funds are utilized to keep small businesses afloat. Population breakdowns were provided by Oregon’s Office of Economic Analysis with the assistance of State Representative Brian Clem.
“The projections represented in our analysis show how important it will be to create more flexibility for Oregon’s hospitality businesses as money from the second round of PPP starts to run out,” said Brandt. “There is good news represented here in showing when we might expect to see additional opportunities to bring back more jobs for Oregonians as we hit vaccination milestones over the course of the coming weeks and months.”
For more information on the efforts of the Oregon Restaurant & Lodging Association please visit OregonRLA.org.
The Oregon Restaurant & Lodging Association is the leading business association for the foodservice and lodging industry in Oregon, which before COVID-19 provided over 180,000 paychecks to working Oregonians. According to the Oregon Employment Department’s December data, over 50,000 Oregonians that once had a job in hospitality do not have work available to return to.