Mark Allen, President & CEO of the International Foodservice Distributors Association (IFDA) issued the following statement on March 27 about the CARES Act.
“Today, Congress took a very important step to provide much needed relief to American citizens and businesses during this unprecedented time. The CARES Act will help ease some of the economic devastation caused by COVID-19 by providing cash flow and liquidity to small businesses. We thank the leadership of the Congress and the President for coming together to act so quickly on this critical issue.
Foodservice distributors, a crucial part of the food supply chain, will lose $24 billion in top line sales, receivables and perishable inventory over the next three months due to the coronavirus crisis. Small businesses operate on paper thin margins, but emergency funding can be the economic difference for the future of these entrepreneurs weighing their options right now. Business owners need to have some level of certainty as they plan for their future, which will allow their employees to plan their futures as well.
No business should go bankrupt because of the financial hardships caused by the coronavirus, so while this is a good first step, we look forward to working with Congress on the next phase of economic relief. As a nation, we must support the businesses that make America great. The $303 billion foodservice distribution industry feeds America by distributing 8.7 billion cases of food and products annually and employing more than 350,000 people. We urge members of Congress and the Administration to act swiftly in a bipartisan manner on additional action to keep our economy running towards recovery.”