But it flagged 4,000 award recipients for suspected fraud and isn't taking timely action to address them. 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! It includes greater auditing requirements for restaurant grants to prevent fraud, as well as new transparency and customer service provisions to ensure that SBA shares information. In addition to restaurants and bars, eligible businesses include food trucks, bakeries, wineries or breweries and inns. The Senate has a $48 billion bill, with more than restaurants eligible for revitalization: gyms, minor league sports teams, companies that support live entertainment events (lighting and sound technicians, etc. This recommendation will remain open until SBA provides evidence of conducting data analytics across RRF awards to detect potentially fraudulent recipients. The sector still has myriad challenges ahead, but a glimmer of hope as Congress is expected to vote on further aid on May 19a $48 billion bill that would fully fund the Restaurant Revitalization Fund. To amend the American Rescue Plan Act of 2021 to increase appropriations to the Restaurant Revitalization Fund, and for other purposes. 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.". In GovTrack.us, a database of bills in the U.S. Congress. They have until March 2023 to spend the money. Just over 100,000 businesses received funding (40 percent of eligible applicants). And by the third quarter of 2021, Britschgi writes, the number of restaurants had surpassed pre-pandemic levels.. 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 Revitalization Fund Award Disbursements, May 3July 1, 2021. Well, then, what about that will-o-the-wisp, fairness? The $55 billion bill would largely replenish a grant program created by the American Rescue Plan that provides assistance to restaurants. RASI will only use your information to contact you about our products and services. SBA stated that the results of the analysis are scheduled to be completed by March 2023. Many hoped that would mean more money into the RRF, which wasnt able to distribute the vast majority of monies requested by restaurants due to lawsuits over a rule intended to help that aid reach minority-owned businesses first. Cardin's bill, S.4008, would provide $40 billion in additional funding for the Restaurant Revitalization Fund. All of the funds had to be used for valid cases and claims up to March 11, 2023. Lawmakers approved the measure in a 223-203 vote, with only about a handful of Republicans backing it. So, in March 2021, seasonal compassion reinforced a political temptation for all seasons Congresss temptation to make life less unfair. 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. Is the grant money taxable and are the expenses deductible? 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. This program provides emergency assistance for eligible restaurants, bars, and other qualifying businesses impacted by COVID-19. 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. Outdoor diners at the Bit and Spur Saloon in Springdale, Utah, in summer 2020. The restaurant industry was the hardest hit by the pandemic. Do it again, but bigger. By contrast, almost half of restaurants that didn't receive RRF funding said it's unlikely they will survive the pandemic, and 94% reported an RRF grant would allow them to retain or rehire staff, according to NRA research. This is not an infusion of funds into the RRF currently; in fact, a new law was introduced and passed by the House of Representatives to replenish the RRF with more than $40 billion, but it did not pass the Senate (See June 2022 update below). The Restaurant Revitalization Fund was established in March 2021 to support eligible entities suffering revenue losses from the COVID-19 pandemic. The SBA closed the program and stopped accepting applications on July 2nd, 2021. In the wake of the COVID-19 pandemic, restrictions on gathering and other crowd control measures had a huge impact on restaurant owners. (Recommendation 5), The Associate Administrator for the Office of Capital Access should develop, document, and implement procedures to use enforcement data on suspected fraud in other SBA programs, such as PPP, to identify potential fraud in RRF recipients. Priority is to be provided to previous RRF applicants that did not receive an award. 3807 (117th). This plan should include coordinating with the OIG. 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. Nevertheless, the Replenishment bill barely passed the House 223 to 203 in April, with only six Republicans favoring it and only four Democrats opposed. More than 90,000 restaurants closed permanently or long-term because of the pandemic. Even the Restaurant Revitalization Fund, with its paltry $28.6 billion in initial funding, wasn't enough to meaningfully help most establishments. The U.S. House of Representatives voted yes on a bill Thursday that would provide $42 billion in relief to foodservice businesses that originally applied for the . How many restaurants originally benefited from the Restaurant Revitalization Fund? 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. Painel do Inscrito. Restaurant Revitalization Fund What's the impact of the Senate's failure to pass RRF? Its an AI bot. Esqueci minha senha. Recipients cannot claim wages paid with RRF grant money as wages for purposes of the ERTC or PPP forgiveness. Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American, A New Normal Takes Hold; Restaurants Focused on Paths to Continued Growth in 2023, DIRECTV for BUSINESS and National Restaurant Association Team-Up to Enhance the Restaurant Experience and Advance Restaurant Workers. 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. Restaurant Revitalization Award Portal. I hear from business owners every day who are having to close their doors and since Congress and the White House couldnt see their way to refill the RRF, hundreds more will face the same fate in the coming weeks.. A particular section of the legislation, Section 5003, laid the foundation for the Restaurant Revitalization Fund. Rebecca Shabad is a politics reporter for NBC News based in Washington. The CARES Act includes a provision for GAO to monitor federal efforts to respond to the COVID-19 pandemic. This is not an infusion of funds into the RRF currently; in fact, a new law was introduced and passed by the House of Representatives to replenish the RRF with more than $40 billion, but it did not pass the Senate (See June 2022 update below).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!As we learn more from the Small Business Administration (SBA) about the Restaurant Revitalization Fund (RRF) and any updates surrounding it, we will continue to make updates on the blog post and right here on The Tip Share!Read the full Blog Post: https://rasiusa.com/blog/restaurant-revitalization-fund-updates/Listen to the full Podcast Episode: https://anchor.fm/the-tip-share/episodes/Restaurant-Revitalization-Fund-RRF-Updates---August-2022-e1mtkjl/a-a8e5o0oSocial Handles: RASI Instagram: https://www.instagram.com/rasinc__/RASI Twitter: https://twitter.com/RASInc_RASI Facebook: https://www.facebook.com/RestaurantAccountingServicesIncRASI LinkedIn: https://www.linkedin.com/company/restaurant-accounting-services-inc-rasi Chapters:00:00 Intro00:15 $180 Million in RRF Unspent Funds - August 2022 Update00:48 What's next for the Restaurant Revitalization Fund in 2022 and into 2023?#RASI #FocusOnFoodNotFinances#restaurantaccounting #restaurantaccountingservices #restaurantaccountingsoftware #restaurantpurchasing #restaurantpurchasingprogram #restaurantbudgets #restaurantbudgeting #foodcosting #menuengineering #restaurantoperations #restaurantpayroll #restaurantHR #restaurantcompliance #restaurantconsulting #restaurantinventorymanagement #openingarestaurant #restaurantstartup (Recommendation 4), The Associate Administrator for the Office of Capital Access should develop and implement data analytics across RRF awards as a means to detect potentially fraudulent award recipients. For instance, it prevented over 30,000 suspicious applications from receiving awards. 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. And stop digging. 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. What are eligible expenses and restrictions that RRF grant recipients should know about? Senate Minority Whip John Thune, R-S.D., splashed cold water on the prospects of the legislation moving forward, comparing it to the stalled Covid relief bill. GAO reviewed SBA documentation, analyzed SBA data on the program's applicants and recipients, and interviewed SBA officials and representatives of industry associations. SBA agreed or partially agreed with two recommendations. from 8 AM - 9 PM ET. Restaurant Revitalization Fund (RRF) Updates. Joanna Fantozzi | Apr 06, 2022. 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. LOOK What Happened When This Restaurant Posted a Politically Incorrect Sign. 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.". Both political parties agreed that the RRF should be replenished but couldn't reach a consensus on how to pay for it. This recommendation will remain open until SBA (1) provides documentation of its review, and (2) addresses or mitigates any deficiencies identified. Optimal accounting solutions for small, medium, multi-unit concept, franchise, and enterprise restaurant operators. The freshest news from the food world every day. Or 28,399 closures. The Independent Restaurant Coalition, which has spent the last two years lobbying for small restaurants in the face of extreme economic uncertainty, issued a statement on Wednesday condemning the decision to abandon restaurants, calling it catastrophic for these establishments. The age of the Silicon Valley moonshot is over. If H.R. If the business permanently closes, the covered period will end when the business permanently closes; or, on March 11, 2023 whichever occurs sooner. 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.). For restaurants, its all but certain that the devastation will continue. Hes also encouraged people to stop working from home and head back into their offices in an effort to move forward after two years of absolute chaos and devastation. Stay up to date on the news from Silicon Valley, and how to take back control of your data and devices. Together with 52 State Associations, we are a network of professional organizations dedicated to serving every restaurant through advocacy, education, and food safety. Christian Britschgi is dubious. the aid could benefit? 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. The SBA will work with the Department of Justice to disburse the money, according to the NRA. JUNE 2022: In 2022, many RRF updates are in the works. Payroll costs claimed as ERTC eligible wages, Forgivable payroll expenses on the PPP forgiveness application, Nonpayroll expenses claimed on the PPP Forgiveness application. (Recommendation 7), Restaurant Revitalization Fund: Opportunities Exist to Improve Oversight. ), buses and ferries, etc. 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. This government aide says it knows what voters want. With so many questions surrounding the RRF, we created this resource and guide to provide answers. For more information, please check out our Privacy Policy. After this money was distributed, more than 177,000 applications were left in limbo at the SBA. In January 2023, SBA stated that recipients have until March 2023 to exhaust RRF funds. Realizar Login. By the time it closed in July 2021, the RRF. Publicly Released: Jul 14, 2022. SBA stated that the agency will review a sample of RRF awards and use the results of this review to inform the effectiveness of its post-award procedures. Stay informed as we add new reports & testimonies. SBA disagreed with five recommendations, including to assess pre-award controls and implement a plan to address fraudulent or ineligible awards. 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. The NRA wrote a letter to Congress on Monday urging policymakers to pass legislation that would refill the fund. 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. They are on the verge of closing permanently as a result.". The bill would also put $13 billion toward other businesses impacted by the COVID-19 crisis. "This should be the driving factor in bipartisan support for replenishing the RRF. Copyright 2023 Sawyer Direct LLC | All Rights Reserved. The act illustrates a timeless truth legislative bargaining is additive. All rights reserved. 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. Senha. The SBA is set to award an added $180 million in unspent funds allocated for the Restaurant Revitalization Fund (RRF) back in 2021. Klicken Sie auf Alle ablehnen, wenn Sie nicht mchten, dass wir und unsere Partner Cookies und personenbezogene Daten fr diese zustzlichen Zwecke verwenden. Subscribe to Restaurant Dive for top news, trends & analysis, The free newsletter covering the top industry headlines, Permission granted by Starbucks Workers United, The Bornk Tuna Sandwich is Back at Erbert & Gerbert's, Olo and Flybuy Strategic Partnership Launches New Premium, Integrated Olo Expo and Order Fire , Interface Announces Technology Acceleration Program for Franchise Brands & Franchisees, CBS NorthStar and Ovation Join Forces to Boost Restaurant Brands' Revenue, By signing up to receive our newsletter, you agree to our, Webinar CEO of Berryhill Baja Grill restaurants in Houston, Jeff Anon, decided to take matters into his own hands in regards to declaring his right to free speech. Ninety-six percent of RRFrecipients said the grant made it more likely that their business would survive. Make Your Nomination for Restaurant Informers 2023, Lapeer Steak and Seafood Lands New Executive Chef McAlpine, Payback Time: What To Do About Your PPP or EIDL Loan, Georgia Hospitality Expo & ProStart Invitational 2023. Are there any reporting requirements for RRF grant recipients? The legislation would also provide $13 billion for other businesses affected by the pandemic, and it would establish oversight and reporting requirements to ensure grants are awarded properly and to verify the use of funding. The U.S. House and Senate passed a bill, S.4008, which would've added $40 billion to the plan - a significant increase over the approximate $29 billion originally proposed in the RRF. UPDATE: April 6, 2022:Sen. Benjamin Cardin (D-MD) introduced a bill similar to the one before the House Tuesday night. The House passed the Relief for Restaurants and other Hard Hit Small Businesses Act of 2022 (H.R. The first reports were due in December 2021, but 32 percent were overdue as of June 2022. The Small Business Administration (SBA) began accepting applications and awarding funds in May 2021. We are beyond disappointed that this massive government funding proposal ignores the needs of 177,300 neighborhood restaurants and bars impacted by the pandemic, IRC executive director Erika Polmar said.