Craft distillers left out of American Rescue Plan – KIRO 7 News Seattle

SEATTLE – The Small Business Administration announced that hard-hit local restaurants and bars can apply for a $ 26 billion share of COVID-19 relief starting next Monday.

But here in Washington state, one important business has been left out – artisanal distilleries.

Reserve a visit to 2bar Spirits in Seattle’s SODO neighborhood and not only can you taste the bourbon, but see how it’s made. 2bar survived the pandemic shutdowns. But it was tough, said founder Nathan Kaiser. “We had to stop production for about four or five months to make sure we could keep the lights on,” he said.

Kaiser is the Vice President of the Washington Distillers Guild of Craft Distillers.

Much of their production goes to restaurants, and when they were forced to close, the business collapsed. “I think we were in 138 distilleries before 2020. And now we’re in 108 so we lost that you know about 30,” he said.

There was hope when he learned distilleries would be eligible for the COVID-19 aid passed by Congress as part of the US rescue plan.

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But then came the eligibility rules set by the Small Business Administration. The rules that require 33% of sales come from local sales to qualify for financial assistance.

Washington state law limits local sales to just 25% of sales, Kaiser said. “And so 108 distilleries will suddenly get no relief,” he said.

In a rare sign of bipartisan unity, the entire Washington congressional delegation wrote to the SBA on Friday calling for the Washington Craft Distillers to be included in COVID-19 relief.

Congressman Derek Kilmer headed the letter.

“I don’t think the SBA intended to shut down distilleries. All we are asking is a sensible solution to change the SBA criteria and make sure we are helping the people who need them, ”said Kilmer.

COVID-19 relief could be as high as $ 30,000 per distillery.

“Enormous. It allows people to pay their rent and pay their people to invest in the business,” Kaiser said.

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