Restaurant Revitalization Fund Approaches Final Stand Would a grant recipient ever have to pay back any of the funds? This is not an infusion of funds into the RRF currently; in. We recommended that SBA do so. Past-due expenses qualify as RRF expenses. Are there any reporting requirements for RRF grant recipients? Lawmakers. The restaurant industry was the hardest hit by the pandemic. This will remain until they fully expend the grant funding or the covered period expires. Among the 435 congressional districts, surely not one lacks businesses eligible for aid, especially from the Senate bill. GAO makes seven recommendations to SBA, including to assess pre-award controls and address deficiencies, strengthen post-award reporting, take additional steps to identify fraudulent or ineligible awards, and develop and implement a plan to address potentially fraudulent award recipients in a timely manner. Even now that the Omicron wave is receding, and more people are going back to restaurants and living their lives normally again, theres no way for these establishments to get back what theyve lost since the shutdowns began in March 2020. 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. Its abundantly clear that the Biden administration considers the pandemic to be basically over. SBA does not immediately investigate all potentially fraudulent awards, and instead waits for recipients to submit final reports (which might not be until April 30, 2023). This recommendation will remain open until SBA develops and implements a plan to respond to potentially fraudulent and ineligible awards in a prompt manner. The unfortunate outcome however was that the demand for the funds was far greater than the supply. Until these funds were used up, they were available for eligible entrepreneurs, establishments, and corporations. SBA to disburse $180M in remaining RRF funds | Restaurant Dive ET, 5 store-level changes driving the Starbucks union, How 6 restaurant giants are hiking menu prices, Starbucks faces corporate employee revolt, Wendys offers franchisees reduced royalty rate, slashes fees on new restaurants, Bonchon to double US presence within 5 years, NRA: One-third of operators predict ghost kitchens will decline, How Retailers Can Embrace New Collaborations with Brands, Reimagining the dine-in experience with technology, How Restaurants Can Turbocharge Loyalty Programs with Payment Data, Starbucks fired a union organizer. House passes aid for restaurants, small businesses affected by Covid For more information, visitRestaurant.org and find us on Twitter@WeRRestaurants, Cision Distribution 888-776-0942 In January 2023, SBA stated that recipients have until March 2023 to exhaust RRF funds. (Recommendation 2), The Associate Administrator for the Office of Capital Access should develop and implement policies and procedures for addressing RRF recipients who do not meet annual reporting requirements. Restaurant Revitalization Fund Distributes $83M in Remaining Funds A requirement for annual reporting submissions applies to any applicant who doesnt fully expend RRF grant funds before December 31, 2021. A particular section of the legislation, Section 5003, laid the foundation for the Restaurant Revitalization Fund. Nevertheless, the Replenishment bill barely passed the House 223 to 203 in April, with only six Republicans favoring it and only four Democrats opposed. Priority is to be provided to previous RRF applicants that did not receive an award. 3807 passes the House and then the Senate, it would be a massive victory for restaurants that are struggling to shake the effects of past dining room restrictions as they navigate supply chain shortages, surging inflation and a historic labor shortfall. 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. Nearly 300,000 restaurants and bars applied for grants through the program last year, according to the Small Business Administration, but only a third of applicants received relief. If the recipient fully expends their funds prior to December 31, 2021, they will be asked to certify that proceeds have been used on eligible expenses. Lawmakers ask SBA for disbursement plan for $180M RRF leftovers 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. 3807), that included $42 billion to replenish the RRF, on April 7. (Recommendation 7), Restaurant Revitalization Fund: Opportunities Exist to Improve Oversight. This recommendation will remain open until SBA enhances its post-award reporting procedures to require recipients to report their operating status. Let Restaurant Dive's free newsletter keep you informed, straight from your inbox. 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. In addition to restaurants and bars, eligible businesses include food trucks, bakeries, wineries or breweries and inns. This recommendation will remain open until SBA (1) assesses how the design of RRF pre-award controls may have adversely affected applicants from U.S. territories, and (2) documents steps to mitigate this issue for future programs. Is the grant money taxable and are the expenses deductible? GAO reviewed SBA documentation, analyzed SBA data on the program's applicants and recipients, and interviewed SBA officials and representatives of industry associations. According to the American Rescue Plan Act of 2021 (ARPA), the amounts received from the SBA in the form of a Restaurant Revitalization Grant shall not be included in gross income (non-taxable); additionally, the expenses incurred are deductible. The American Rescue Plan created the Restaurant Revitalization Fund. So, in March 2021, seasonal compassion reinforced a political temptation for all seasons Congresss temptation to make life less unfair. 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. Six weeks ago six weeks of economic recovery ago Britschgi noted that in general, there are more small businesses open today than existed before the pandemic. And almost all government-dictated restrictions on commerce have ended. The Small Business Administration (SBA) began accepting applications and awarding funds in May 2021. Is another round of the Restaurant Revitalization Fund coming? 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. Recipients that are unable to use all of the funds received on eligible expenses by the end of the covered period must return any unused funds to the Treasury. 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. 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. Well, then, what about that will-o-the-wisp, fairness? By the time it closed in July 2021, the RRF. 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. In 2020 and 2021, restaurants, bars, and other food service businesses experienced substantial revenue loss and unemployment resulting from the COVID-19 pandemic. In March 2021, Congress appropriated $28.6 billion to SBA for a Restaurant Revitalization Fund to assist the industry. There comes a point where the right policy is: Stop smoothing. The median award was about $126,000. SBA requires recipients to report annually on fund use, but has taken limited steps to enforce reporting requirements and identify fraudulent or ineligible awards. Operators receiving funds should receive notification today and SBA will begin transmitting the grants next week. The Latest Restaurant Revitalization Fund (RRF) Updates In the wake of the COVID-19 pandemic, restrictions on gathering and other crowd control measures had a huge impact on restaurant owners. There are steps the government can take to support restaurants in every community, and we will continue to press for solutions at the federal, state, and local level.". The House passed the Relief for Restaurants and other Hard Hit Small Businesses Act of 2022 (H.R. Two senators and two congressmen signed a letter Tuesday asking the Small Business Administration to update Congress on its plans to disburse $180 million in unallocated Restaurant Revitalization Fund money. The RRF is actually part of the American Rescue Plan Act (ARPA), which was established in March 2021. Do it again, but bigger. Oops. Restaurant Revitalization Fund What's the impact of the Senate's failure to pass RRF? This news doesnt exactly come as a surprise, but earlier this year, there was some hope that more money was coming. H.R.3807 - 117th Congress (2021-2022): Restaurant Revitalization Fund Keep reading to learn more about RRF grant updates, eligibility, RRF forgiveness, and more. In 2022, many RRF updates are in the works. Atendimento ao inscrito. Restaurant Owners RRF SBA EIDL Restaurant Revitalization Funds - Yahoo! For instance, it prevented over 30,000 suspicious applications from receiving awards. The number of people making reservations has also returned to 2019 levels. Furthermore, Bureau of Labor Statistics data shows that the 11 million people working in restaurants and bars in March 2022 was just 5 percent below the number in March 2019. Back in January, a Biden administration official said pretty plainly that the president had no plans to support a new comprehensive stimulus for all Americans, but did hint that there might be something small for restaurants on the way. 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. As a recap, the Restaurant Revitalization Fund was created to give restaurants and other hospitality-related businesses the financial assistance that they need to get through this world-wide pandemic.To ensure all types of restaurant owners receive funding, including smaller establishments and minority . 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. "We must continue to look forward because the enormous challenges of the industry will continue beyond today. The unions proposals often focus on specific changes to systems workers interact with all day, every day, including equipment and mobile ordering. By June 2021, the fund's $28.6 billion had been disbursed to 100,000 applicants in grants averaging $283,000. What are eligible expenses and restrictions that RRF grant recipients should know about? What is the timeframe for using the RRF grant money? For more information, please check out our Privacy Policy. The age of the Silicon Valley moonshot is over. The SBA is set to award an added $180 million in unspent funds allocated for the Restaurant Revitalization Fund (RRF) back in 2021. If the business permanently closes, the covered period will end when the business permanently closes; or, on March 11, 2023 whichever occurs sooner. The U.S. House and Senate passed a bill, S.4008, which wouldve added $40 billion to the plan a significant increase over the approximate $29 billion originally proposed in the RRF. Rebecca Shabad is a politics reporter for NBC News based in Washington. About 40% of eligible applicants received awards from the resulting Restaurant Revitalization Fund before it was depleted. Restaurant Revitalization Award Portal. The SBA closed the program and stopped accepting applications on July 2nd, 2021. 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.

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