Representatives Jennifer Wexton (D-Va.), María Elvira Salazar (R-Fla.), Jason Crow (D-Colo.), and Dan Newhouse (R-Wash.) introduced the bipartisan Fairness for Craft Beverage Producers Act. This legislation would give breweries and other beverage alcohol producers the access to additional Paycheck Protection Program (PPP) funds provided in second draw loans, and add NAICS code 3121 to the list of hardest hit businesses that can receive five additional months of principal and interest payments on 7(a) or 504 loans.
The bill provides that:
- Businesses that start with NAICS code 3121, that also derived at least 35% of gross annual revenue during either calendar year 2019 or 2020 from in-person sales of products will be allowed to apply for 3.5 times their average monthly payroll on second draw PPP loans (assuming they meet the other requirements for second draw loans).
- Businesses that start with NAICS code 3121 that also derived at least 35 percent of gross annual revenue during either calendar year 2019 or 2020 from in-person sales of products will be borrowers considered to be underserved—namely the smallest or hardest hit by the pandemic—will receive an additional five months of P&I payments, also capped at $9,000 per borrower per month. They include:
- Borrowers with SBA microloans or 7(a) Community Advantage loans.
- Borrowers with any 7(a) or 504 loan in the hardest hit sectors, as measured by the severity of sector-wide job losses since the start of the pandemic.
“There are more than 8,400 breweries across the U.S., the majority of whom make the majority of their revenue in their taprooms and tasting rooms,” said the Brewers Association President and CEO Bob Pease. “The Brewers Association applauds the introduction of this bill, and thanks the members of congress for recognizing that small and independent breweries need additional assistance during the pandemic.”
The Brewers Association is encouraging members of congress to cosponsor this legislation. We will update our members as the bill progresses.