July 23, 2020 — Representatives Darin LaHood (R-IL) and Jimmy Panetta (D-CA) introduced the Providing Liquidity for Uncollectible Sales (PLUS) Act. The legislation, which provides a tax credit to offset uncollectable debt incurred due to COVID-19 shutdowns, received support from the United Fresh Produce Association, the International Food Distributors Association (IFDA), and National Fisheries Institute (NFI).
Shutdowns lead to significant losses in the foodservice distribution sector as restaurants and other entities were unable to pay distributors for products. According to the NFI, these losses piled up to over $12 billion, with seafood distributors noting that $2.2 billion in debt owed to them, produce noted a $5 billion tab and broadline distributors also saw a $5 billion number.