$100M available in grants to support Washington hospitality, lodging businesses

Published 5:00 am Thursday, March 9, 2023

OLYMPIA, Wash. — The Washington State Department of Commerce announced a new grant opportunity for businesses in the hospitality and lodging industry that sustained business losses because of the pandemic.

An informational webinar will be 2 to 3 p.m. on Zoom for those who would like to know more information. To register, visit wahospitalitygrants.com. The state grant application portal will open Tuesday, March 14.

For qualifying businesses, including restaurants, hotels and motels in Washington State, a one-time grant will be given to help bounce back from the economic chaos the pandemic caused.

Chris Green, assistant director of Commerce’s Office of Economic Development and Competitiveness, said in a news release that while some businesses in the state are starting to recover and rebuild in the wake of the public health crisis, there are still some that continue to face historic challenges.

“The hospitality and lodging industry is an essential part of our economy, and these grants will help affected businesses across the state recover from public health concerns that disrupted their operations for the last three years,” Green said.

To be eligible to apply, businesses should have experienced a decline of 25% or more in gross receipts or sales between 2019 and 2020 due to the pandemic and related health and safety measures. They must generate a minimum of $12,000 in gross receipts or sales in 2019 or 2020 if the business opened that year and must earn at least 51% of their revenue in Washington. Additionally, businesses must have expenses that are necessary to continue operations such as payroll and rent.

Businesses that have closed permanently or have intentions of doing so in 2023 are not eligible to apply for funding.

The Department of Commerce received $100 million in grants through the Coronavirus State & Local Fiscal Recovery Fund, which was a component of the federal American Rescue Plan. Out of the total amount, $15 million has been reserved specifically to reimburse qualifying lodging establishments that sustained economic losses during the state’s eviction moratorium under the governor’s proclamations.

Lodging establishments refer to hotels, motels, or similar establishments that are taxable by the state and have 40 or more lodging units. Eligible losses include room charges that were not paid by individuals who stayed during the moratorium, any legal expenses incurred by lodging establishments due to the moratorium, and any repair expenses directly related to damage to rooms.

The grants have a primary focus on small businesses that generate $5 million or less in annual gross receipts or sales within designated NAICS codes, which stands for North American Industry Classification System.

If Commerce is able to fully fund all eligible applicants from the target pool and still have leftover funds, they may consider awarding grants to businesses with annual gross receipts or sales exceeding $5 million.

For questions about grant applications, email info@wahospitalitygrants.com.

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