(Recommendation 7), Restaurant Revitalization Fund: Opportunities Exist to Improve Oversight. In 2020 and 2021, restaurants, bars, and other food service businesses experienced substantial revenue loss and unemployment resulting from the COVID-19 pandemic. We noted in our report, however, that SBA's post-award review procedures for RRF state that flagged awards will be reviewed when the recipients certify that they have spent their entire award or after they submit their final use-of-funds report (not when fraud is initially suspected). That is a serious consideration. "This should be the driving factor in bipartisan support for replenishing the RRF. Initially, nearly $29 billion was appropriated to award eligible restaurants and other establishments to help their businesses in the wake of the pandemic. LOS ANGELES, CA / ACCESSWIRE / May 2, 2022 / The Restaurant Revitalization Fund (RRF) has promising news that funds may be added, however, are not guaranteed just yet. The Restaurant Revitalization Fund was established in March 2021 to support eligible entities suffering revenue losses from the COVID-19 pandemic. If the business permanently closes, the covered period will end when the business permanently closes; or, on March 11, 2023 whichever occurs sooner. the aid could benefit? Rescuing restaurants (again) ought to give Congress indigestion, Sign up for a weekly roundup of thought-provoking ideas and debates, Alex Murdaughs conviction rested on a fateful phone video. The government closed restaurants and bars because they were considered particularly apt to endanger the public by spreading the coronavirus, so the public should compensate everyone for losses suffered on the publics behalf. Four mistakes youre making with home internet. For more information about the SBA, visit sba.gov. National Restaurant Association Nov 23, 2022, 16:51 ET WASHINGTON, Nov. 23, 2022 /PRNewswire/ -- Today, the Small Business Administration (SBA) announced the release of $83 million dollars in. Follow. We recommended that SBA do so. In GovTrack.us, a database of bills in the U.S. Congress. This program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. This program provides emergency assistance for eligible restaurants, bars, and other qualifying businesses impacted by COVID-19. Most recipients (72 percent) reported they were owned by women, veterans, or members of socially and economically disadvantaged groups. Many independently owned restaurants havent been anywhere near profitable since the pandemic began, and its clear that many of them are in a hole that theyll never be able to dig themselves out of. "With the looming threat of another variant and growing challenges of inflation for both operators and consumers, the economic boost RRF will provide for those 177,000 restaurants would reach far into our communities," Sean Kennedy, NRA's executive vice president of public affairs, wrote in the letter. The median award was about $126,000. Weitere Informationen ber die Verwendung Ihrer personenbezogenen Daten finden Sie in unserer Datenschutzerklrung und unserer Cookie-Richtlinie. U.S. Small Business Administration RRF Award Portal, Restaurant Revitalization Funding Program. The restaurant industry was the hardest hit by the pandemic. Published May 24, 2022 Thai Phi Le Senior Managing Editor By the time it closed in July 2021, the RRF gave out just about a third of the grant requests that it received because the demand was so great. This recommendation will remain open until SBA provides evidence of conducting data analytics across RRF awards to detect potentially fraudulent recipients. There are several strategic . Cardin's bill, S.4008, would provide $40 billion in additional funding for the Restaurant Revitalization Fund. Recipients cannot claim wages paid with RRF grant money as wages for purposes of the ERTC or PPP forgiveness. "I think right now it's hard to as you saw, even with the $10 billion package of new money for Covid unless they can reprogram or repurpose it, it's going to be a hard sell," he said Thursday afternoon as he exited Capitol. Welp, its (almost) official: when Congress takes up the 2022 omnibus spending bill, there wont be any new money for restaurants that are still struggling after years of pandemic-related losses. However, in May, the Senate didnt pass the proposed increase, which was viewed by many as a setback. Taking additional steps to identify and address potentially fraudulent awards in a timely manner could help SBA recover funds. Is the grant money taxable and are the expenses deductible? The 177,000 restaurants that applied but didn't receive RRF funding represent around 20% of the industry, according to the National Restaurant Association, suggesting another round of restaurant-specific federal grants could improve the industry's recovery. Realizar Login. Lawmakers approved the measure in a 223-203 vote, with only about a handful of Republicans backing it. Everything from labor to packaging to utilities have gotten more expensive, and that ongoing rise in the cost of doing business continues to have a disproportionate impact on small businesses like restaurants. SBA disagreed with five recommendations, including to assess pre-award controls and implement a plan to address fraudulent or ineligible awards. Are there any reporting requirements for RRF grant recipients? Number of Restaurant Revitalization Fund Applications by Eligibility and Funding Status. For restaurants, its all but certain that the devastation will continue. And SBA has not proactively used data analytics or information from enforcement entities to identify potentially fraudulent award recipients. By December 31, 2021, all Awardees are required to report through this application portal how much of their award has been used against each eligible use category. 3807), that included $42 billion to replenish the RRF, on April 7. UPDATE: April 6, 2022:Sen. Benjamin Cardin (D-MD) introduced a bill similar to the one before the House Tuesday night. As a restaurant owner, youve most definitely heard about the varying RRF updates throughout the last year, how they could possibly impact your establishment, and more. Would a grant recipient ever have to pay back any of the funds? SBA requires recipients to report annually on fund use, but has taken limited steps to enforce reporting requirements and identify fraudulent or ineligible awards. The House already has passed H.R. If you are the site owner (or you manage this site), please whitelist your IP or if you think this block is an error please open a support ticket and make sure to include the block details (displayed in the box below), so we can assist you in troubleshooting the issue. New York City got him rehired, KFC is getting rid of 5 menu items but one fan favorite is finally coming back, Wagamamas Food Fight With Hedge Fund Is Delicious, Smart Mobility Data: The Essential Guide to US Retail Location Selection, What Diners Want: 5 Top Trends in the Restaurant Industry, NRA forecasts 2023 job growth, not major recession, Starbucks board opposes labor review backed by NYC pension funds, CA bill would establish joint franchisor-franchisee liability for QSRs, The Relief for Restaurants and Other Hard Hit Small Businesses Act of 2022 (H.R. Atendimento ao inscrito. The industry still has not recreated 565,000 jobs lost at that time, which is the largest current employment deficit caused by the pandemic among all U.S. industries. The unions proposals often focus on specific changes to systems workers interact with all day, every day, including equipment and mobile ordering. 11 a 13 de maio de 2022 - Lavras/MG. The CARES Act includes a provision for GAO to monitor federal efforts to respond to the COVID-19 pandemic. A requirement for annual reporting submissions applies to any applicant who doesnt fully expend RRF grant funds before December 31, 2021. Oops. In January 2023, SBA stated that it would offer to participate in a government-wide dialogue to address systemic weaknesses related to IRS and territories' tax validation systems. While SBA prevented over 30,000 suspicious applications from receiving awards, GAO identified systemic control weaknesses. An estimated 90,000 restaurants have already closed their doors during the pandemic, and that number will likely continue to grow. After congress walked away from the funds replenishment in March 2022 and the Senate failed to pass the replenishment in May 2022, 177,000 establishments were left without aid. It is not clear how, when, or to whom these RRF grants will be issued, so do not throw away any correspondence from the SBA because you may be one of the lucky stores to receive an extremely late RRF grant! Please enter a valid email and try again. Payroll costs claimed as ERTC eligible wages, Forgivable payroll expenses on the PPP forgiveness application, Nonpayroll expenses claimed on the PPP Forgiveness application. Reps. Brian Fitzpatrick (R, PA) and Earl Blumenauer (D, OR), and Sens. Arriving as federal spending has driven inflation to a 40-year high, the Replenishment Act indicates disregard for this rule: When you are in a hole, quit digging. Congress can talk about refilling the Restaurant Revitalization Fund, but it can never be full enough to service all factions who can claim, with some plausibility, that they experienced unfairness not easily distinguished from that suffered by factions who benefited from the first $28 billion. www.arffinancial.com/updates-to-the-restaurant-revitalization-fund/, Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/103.0.0.0 Safari/537.36. What is the timeframe for using the RRF grant money? According to reporting from CNNs Manu Raju, Senate small business and entrepreneurship committee chairman Ben Cardin said on Tuesday, March 8 that Republican opposition means that the Restaurant Revitalization Fund (RRF) will not be replenished. The SBA will work with the Department of Justice to disburse the money, according to the NRA. The SBA closed the program and stopped accepting applications on July 2nd, 2021. Brands like Chipotle, McDonalds and Starbucksarewalking a tightrope charge enough to protect the bottom line without alienating customers. The National Restaurant Association is asking Congress to replenish the Restaurant Revitalization Fund as the Covid omicron variant hits operators' businesses. IE 11 is not supported. Senha. However, for expensesses incurred on February 15, 2020 or after, be careful not to use the following: So long as funds are utilized for eligible applications no later than March 11, 2023, there is no requirement for recipients to repay the funding. The $55 billion bill would largely replenish a grant program created by the American Rescue Plan that provides assistance to restaurants. The bill is co-sponsored by Sen. Roger Wicker (R-MS) and includes additional funds for gyms, live venues and transit systems, among other business categories. Well, then, what about that will-o-the-wisp, fairness? This deadline had many restaurants wondering who is eligible, when to expect additional RRF updates to the legislation, if any additional RRF forgiveness has been granted, and which anti-fraud mechanisms were put in place to determine which claims are legitimate. What to do? Sie knnen Ihre Einstellungen jederzeit ndern, indem Sie auf unseren Websites und Apps auf den Link Datenschutz-Dashboard klicken. 3807), which would refill the Restaurant Revitalization Fund with $42 billion, was reintroduced in a Rules Committee meeting in the House of Representatives on Tuesday. For more information, please check out our Privacy Policy. These restaurants fighting for survival cannot go it alone any longer, and should not be treated as a spot in the rear-view mirror of Congress.". Even the Restaurant Revitalization Fund, with its paltry $28.6 billion in initial funding, wasnt enough to meaningfully help most establishments. Copyright 1999 2023 GoDaddy Operating Company, LLC. The bill also would provide $13 billion for a Hard Hit Industries Award Program for small From the recruitment of employees to the constantly rising costs for food, running a restaurant right now is a daily struggle. ), buses and ferries, etc. After this money was distributed, more than 177,000 applications were left in limbo at the SBA. Today's announcement is great news for those 169 operators fortunate enough to receive an RRF grant, but hundreds of thousands more are struggling with uncertainty. Joanna Fantozzi | Apr 06, 2022. Forty-three Senate Republicans, objecting to the fact that only a smidgen of the Senate bills cost would be offset by economies elsewhere, on May 19 prevented there being 60 votes to proceed with it. Will an injustice be done if, with the pandemic receding and the economy reviving, nothing is done for those who missed out in the first-come-first-served scramble for the initial (and perhaps final) $28 billion? the Senate didnt pass the proposed increase, Easy Tips To Understand How To Properly Read Your Balance Sheet, Restaurant Business & Startup Loans: Complete Guide, Business payroll costs, including health insurance, Payments on any business mortgage obligation (both principal and interest; note: this does not include any prepayment of principal on a mortgage obligation), Business rent payments (note: this does not include prepayment of rent), Business debt service (both principal and interest; note: this does not include any prepayment of principal or interest), Business utility payments, maintenance expenses, Business supplies (including protective equipment and cleaning materials), Covered supplier costs, same definition as under PPP Forgiveness nonpayroll expensesfood purchases, Legal expenses, marketing expenses, insurance expenses, business licenses, shipping fees, equipment (new hood or a new grill, new fryers, etc.). "We must continue to look forward because the enormous challenges of the industry will continue beyond today. Publicly Released: Jul 14, 2022. Stay informed as we add new reports & testimonies. The bill would also put $13 billion toward other businesses impacted by the COVID-19 crisis. All Applicants that do not fully expend award funds . The Association was first to lay out the plan for a restaurant industry recovery fund to Congress in April 2020. The American Rescue Plan created the Restaurant Revitalization Fund. Roger Wicker (R-MS) and Kyrsten Sinema (D-AZ), signed the letter . Washington, D.C. - The National Restaurant Association today sent a letter to Congressional leadership encouraging passage of Restaurant Revitalization Fund (RRF) Replenishment if the program comes up for a vote this week. By June 2021, the funds $28.6 billion had been disbursed to 100,000 applicants in grants averaging $283,000. A similar attempt to refill the RRF was left out of the omnibus spending bill earlier this year. Bei der Nutzung unserer Websites und Apps verwenden wir, unsere Websites und Apps fr Sie bereitzustellen, Nutzer zu authentifizieren, Sicherheitsmanahmen anzuwenden und Spam und Missbrauch zu verhindern, und, Ihre Nutzung unserer Websites und Apps zu messen, personalisierte Werbung und Inhalte auf der Grundlage von Interessenprofilen anzuzeigen, die Effektivitt von personalisierten Anzeigen und Inhalten zu messen, sowie, unsere Produkte und Dienstleistungen zu entwickeln und zu verbessern. And stop digging. In March 2021, Congress appropriated $28.6 billion to the Small Business Administration to help the food service industry weather the COVID-19 pandemic. It is axiomatic that the titles of congressional bills, like the titles of Marx Brothers movies (Duck Soup, Horse Feathers), are not scrupulously informative. This recommendation will remain open until SBA develops and implements a plan to respond to potentially fraudulent and ineligible awards in a prompt manner. This government aide says it knows what voters want. Past-due expenses qualify as RRF expenses. From independent operators to hospitality groups, most are disappointed and some are angry that there remains no federal aid to support struggling restaurants. So, however, is this: Once government begins to pursue the chimera of ever-more-perfect fairness, it finds actually, it incites more and more factions claiming that justice demands their inclusion in the governments ever-expanding plans for smoothing lifes rough surfaces. GAO reviewed SBA documentation, analyzed SBA data on the program's applicants and recipients, and interviewed SBA officials and representatives of industry associations. Christian Britschgi is dubious. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023. Keep reading to learn more about RRF grant updates, eligibility, RRF forgiveness, and more. However, in May, the Senate didn't pass the proposed increase, which was viewed by many as a setback. The President has encouraged most people to stop wearing masks in indoor spaces, something that was unthinkable a year ago. WASHINGTON The House passed a $55 billion bill Thursday that would provide assistance to restaurants and other small businesses that have struggled because of the coronavirus pandemic. The Relief for Restaurants and Other Hard Hit Small Businesses Act of 2022 (H.R. Including $85 million for certain border region businesses, such as those in (herewith a geography lesson) the Northwest Angle, which CQ Roll Call explains is a region of Minnesota that is separated from the rest of the state by the Lake of the Woods but shares land borders with Canada, whose strict pandemic protocols injured Americans living in the Angle. On Nov. 23, the U.S. Small Business Administration (SBA) released a statement about the current state of the Restaurant Revitalization Fund (RFF), which helped more than 100,000 restaurants and food and beverage business owners during the pandemic. In addition to restaurants and bars, eligible businesses include food trucks, bakeries, wineries or breweries and inns. Among its objectives, this report examines recipient characteristics, SBA's internal controls and fraud risk management practices, and SBA's efforts to monitor recipients. LOOK What Happened When This Restaurant Posted a Politically Incorrect Sign. The Small Business Administration confirmed it will distribute $180 million in unspent money allocated for the Restaurant Revitalization Fund as awards, the National Restaurant Association said in an email to Restaurant Dive. A vague, anti-drag bill in Tennessee has bar and restaurant owners worried for their future, By submitting your email, you agree to our, Congress Wont Send Any More Financial Aid to Restaurants Despite Pleas From the Industry, The Weird (and Wired) Truth Behind Whats Really in Coca-Cola, Why Coca-Cola contracts with a chemical company to manufacture cocaine in New Jersey, there was some hope that more money was coming, just about a third of the grant requests that it received because the demand was so great, exhortations from everyone from Tom Colicchio to Elizabeth Warren for Congress to provide aid to restaurants, that ongoing rise in the cost of doing business, Liquid Deaths New Tea Tallboys Are Coming for AriZonas Neck, If You Took the Drag Away, Then Its Just Another Boring Bar, How to Make Misis Iconic Ricotta-Filled Occhi Pasta. Restaurant Industry News and Resources in Georgia. It's unclear whether Democrats in the evenly split Senate will be able to win over at least 10 Republicans to overcome the 60-vote threshold to end any potential filibuster and pass the measure. Its an AI bot. By the time it closed in July 2021, the RRF. Small businesses of long standing, and families who went into debt to launch, say, restaurants or bars or bakeries just before the pandemic, now have blighted futures the caprice of rotten luck. Wenn Sie Ihre Auswahl anpassen mchten, klicken Sie auf Datenschutzeinstellungen verwalten. In January 2023, SBA stated that it would conduct a review of RRF awards and use the results to inform the effectiveness of pre-award controls. They have until March 2023 to spend the money. In January 2023, SBA stated that SBA's Office of Financial Program Operations had partnered with the agency's Office of the Chief Data Office to execute data analytics across the RRF portfolio. The SBA is set to award an added $180 million in unspent funds allocated for the Restaurant Revitalization Fund (RRF) back in 2021. CPF, documento de identificao ou Cdigo da Conta. Restaurant Revitalization Fund Distributes $83M in Remaining Funds November 28, 2022 On Nov. 23, the U.S. Small Business Administration (SBA) released a statement about the current state of the Restaurant Revitalization Fund (RFF), which helped more than 100,000 restaurants and food and beverage business owners during the pandemic. LISTEN TO THE QUICK UPDATE PODCAST BELOW! The American Rescue Plan Act (ARPA) established the Restaurant Revitalization Fund (RRF) to provide funding to help restaurants and other eligible businesses keep their doors open. WASHINGTON The House passed a $55 billion bill Thursday that would provide assistance to restaurants and other small businesses that have struggled because of the coronavirus pandemic.