Following the lead of states like California, Massachusetts, and Nebraska, states should extend liquor credit laws for restaurants.

In many states, wholesalers and manufacturers can only extend credit to retailers for 30 days. After that period it becomes illegal to extend credit. In normal circumstances the law operates at its most optimal state.

But these are not normal circumstances. With shelter-in-orders in place, restaurants and bars will not have much money, if any money, coming in.

Restaurants have worked with their vendors to extend terms of payments to stave off these desolate days. However, based on state liquor laws, there is little if no flexibility to extend credit terms for liquor.

In light of this Massachusetts issued an order extending credit from 60 days to 90 days, Nebraska extended credit from 30 days to 90 days, and California suspended its credit laws.

We face difficult times and if restaurants can’t delay payment, they may not be able to meet obligations to pay employees that were temporarily laid-off.

In a high cost, low margin business, with little to no income coming in, our restaurants need a break.

We hope state regulatory agencies will work with the hospitality community to provide relief during this difficult time!

NE extension of time MA extension of time