Michigan governor announces $3.3 million in financial relief going to 657 bar and restaurant owners

Bars and restaurants have 90 days after emergency declarations are lifted to repurchase inventory

(David Keyton, Copyright 2020 The Associated Press. All rights reserved.)

LASNING, Mich. – More than $3.3 million in financial relief is going to 657 bar and restaurant owners across the state – a financial lifeline averaging over $5,000 for hard-hit hospitality businesses, Gov. Gretchen Whitmer announced Monday. The Michigan Liquor Control Commission is administrator of the governor’s spirits buyback program.

“I know the financial losses have been incredibly devastating to business owners in the hospitality industry during this COVID-19 pandemic,” said Whitmer. “I am pleased that through this innovative program, we can provide much-needed cash to hundreds of Michigan’s bars and restaurants that are struggling right now, to help tide them over until they’re open for business again.”

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The number of confirmed cases of the coronavirus (COVID-19) in Michigan has risen to 43,754 as of Monday, including 4,049 deaths, state officials report.

Pursuant to the governor’s Executive Order 2020-46, the one-of-a-kind program offered a 100% cash buyback to on-premise liquor licensees for spirits they had ordered from the Commission prior to March 16.

Licensees actually keep possession of the products the Commission bought back, with no bottles being picked up. Bars and restaurants have 90 days after emergency declarations are lifted to repurchase the inventory by selling it when they’re back open for business and pay the Commission back interest free.

“The Commission is proud to be a part of the governor’s one-of a kind liquor buyback,” said MLCC Chair Pat Gagliardi. “We’re extremely pleased to provide these neighborhood bars and restaurants across Michigan a financial lifeline they can count on in these uncertain times.”

Eligible licensees applied for the spirits buyback program directly through the MLCC from April 14-24. Once applications were approved by the MLCC, checks were issued to licensees from the Michigan Department of Treasury.

Dine-in services of all bars and restaurants in the state were suspended on March 16 by Executive Order as the coronavirus outbreak continued to spread.