Support the Fairness for Craft Beverage Producers Act

Craft beverage businesses who rely on direct to consumer sales were deeply disrupted by the Covid-19 pandemic. The year-end Covid-relief package allowed certain businesses (under NAICS code 72) to apply for 3.5 times their average monthly payroll on second draw PPP loans, but many cideries with prominent tasting rooms were excluded from the expanded relief. The Fairness for Craft Beverage Producers Act will ensure that cideries, wineries, meaderies, distilleries and breweries can receive the expanded funding, too. This would include businesses that fall under NAICS 3121 series and derive at least 35% of gross annual revenue during either calendar year 2019 or 2020 from in-person sales of products.

Craft beverage businesses who rely on direct to consumer sales were deeply disrupted by the Covid-19 pandemic. The year-end Covid-relief package allowed certain businesses (under NAICS code 72) to apply for 3.5 times their average monthly payroll on second draw PPP loans, but many cideries with prominent tasting rooms were excluded from the expanded relief. The Fairness for Craft Beverage Producers Act will ensure that cideries, wineries, meaderies, distilleries and breweries can receive the expanded funding, too. This would include businesses that fall under NAICS 3121 series and derive at least 35% of gross annual revenue during either calendar year 2019 or 2020 from in-person sales of products.

Ask Your Rep to Support Cideries By Sponsoring H.R. 1035

It's not surprising that America's consumer-facing businesses have been some of the hardest hit economically in this pandemic. Congress addressed that reality back in December when they expanded PPP loan amounts for businesses under the food services tax class code (NAICS 72). But most of America's cideries and other craft beverage businesses who rely heavily on direct to consumer sales may fall under a different tax class code.

The Fairness for Craft Beverage Act ensures that cideries, wineries, meaderies, breweries and distilleries that rely on direct to consumer sales qualify for the much needed expanded PPP loans. It expands the increased loan eligibitiy to include businesses under the NAICS 3121 series who earned at least 35% of gross annual revenue in 2019 or 2020 from in-person sales of products.

Please join us in asking your Congressional representative to support H.R. 1035 and ensure that cideries and other craft beverage businesses rebound and rehire for the benefit of the local economies they support.

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Subject:

I am writing to ask for your support of the Fairness For Craft Beverages Act, H.R. 1035. The Year End Covid-19 Relief Package expanded the Paycheck Protection Program (PPP) for businesses under National Industry Classification System (NAICS) code 72. These businesses are, without a doubt, an important target for additional relief, but many of America's hard cideries, wineries, breweries, distilleries and meaderies may fall under NAICS code 3121 series while still receiving a significant portion of their revenue from in-person sales in a pre-pandemic year.

H.R. 1035 will ensure that businesses, who use NAICS 3121 and also derived 35% of their gross revenue from in-person sales in 2019 or 2020, are also eligible for the expanded PPP loans. Specifically, they could apply for 3.5 times their average monthly payroll versus 2.5 times.

The US is home to around 1,200 hard cideries and every state in the country is home to commercial cider production. Cideries support local tourism industries, apple orchards, restaurants, retailers and supply partners. More than 80% of US cideries were forced to close on-premise sales for most or part of 2020 and 50% of America’s cideries had to lay-off employees due to lost revenue. The expanded PPP loan eligibility is key to allowing these businesses to rebound and rehire.

I hope you will support the Fairness for Craft Beverages Act (H.R. 1035) to ensure cideries and other craft beverage businesses are getting the support they need during this critical juncture. Thank you for your consideration.

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