3807, the Restaurant Revitalization Fund Replenishment Act of 2021. 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 age of the Silicon Valley moonshot is over. WASHINGTON, Nov. 23, 2022 /PRNewswire/ -- Today, the Small Business Administration (SBA) announced the release of $83 million dollars in unobligated Restaurant Revitalization Fund (RRF) grants to 169 operators with pending applications. The freshest news from the food world every day. The bill would provide $42 billion to replenish the RRF. (Recommendation 6), The Associate Administrator for the Office of Capital Access should develop and implement a plan to respond to potentially fraudulent and ineligible RRF awards in a prompt and consistent manner. Keep reading to learn more about RRF grant updates, eligibility, RRF forgiveness, and more. The SBA has contacted recipients of the awards. The recipient has until March 11th of 2023 to use the RRF grant unless the business has permanently closed. 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. 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). 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. In 2020, independent locations declined by 8 percent, according to The NPD Group. 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. We sponsor the industry's largest trade show (National Restaurant Association Show); leading food safety training and certification program (ServSafe); unique career-building high school program (the NRAEF's ProStart). Follow. 2023 Restaurant Accounting Services Inc. All Rights Reserved. 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. 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. The Association was first to lay out the plan for a restaurant industry recovery fund to Congress in April 2020. Lawmakers. 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. GAO reviewed SBA documentation, analyzed SBA data on the program's applicants and recipients, and interviewed SBA officials and representatives of industry associations. Its abundantly clear that the Biden administration considers the pandemic to be basically over. They are on the verge of closing permanently as a result.". For more information, please check out our Privacy Policy. Despite literal years of exhortations from everyone from Tom Colicchio to Elizabeth Warren for Congress to provide aid to restaurants, neither the Biden administration nor Congress has acted in a way to provide meaningful, comprehensive assistance. In January 2023, SBA stated that it follows standard operating procedures to refer suspicious activity to the OIG. Dont do that. This recommendation will remain open until SBA provides evidence of using enforcement data (e.g., information on suspicious borrowers provided by the Department of Justice or SBA's Office of Inspector General) on suspected fraud in other SBA programs to identify potential fraud in RRF recipients. The restaurant industry was the hardest hit by the pandemic. (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. Rebecca Shabad is a politics reporter for NBC News based in Washington. Nevertheless, the Replenishment bill barely passed the House 223 to 203 in April, with only six Republicans favoring it and only four Democrats opposed. 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. While SBA prevented over 30,000 suspicious applications from receiving awards, GAO identified systemic control weaknesses. 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. Access from your Country was disabled by the administrator. Restaurant owners have taken on substantial debt and tapped into their own savings accounts, just in an effort to keep the doors open. 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. 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. Nova Inscrio. The unfortunate outcome however was that the demand for the funds was far greater than the supply. 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. 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. Cardin's bill, S.4008, would provide $40 billion in additional funding for the Restaurant Revitalization Fund. Until these funds were used up, they were available for eligible entrepreneurs, establishments, and corporations. A requirement for annual reporting submissions applies to any applicant who doesnt fully expend RRF grant funds before December 31, 2021. The nation has never experienced as large and abrupt an intervention as the cumulative federal and state lockdowns of commercial activity imposed when covid-19 surged in 2020. Operators receiving funds should receive notification today and SBA will begin transmitting the grants next week. This will remain until they fully expend the grant funding or the covered period expires. A similar attempt to refill the RRF was left out of the omnibus spending bill earlier this year. 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.). In 2022, many RRF updates are in the works. 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. (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. Supply chain shortages are still a massive problem for restaurants, and the cost of doing business grows by the day. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023. The House is expected to vote on the bill,which has a mix of 234 Democratic and Republican sponsors, this week. JUNE 2022: In 2022, many RRF updates are in the works. Copyright 2023 Sawyer Direct LLC | All Rights Reserved. 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. IE 11 is not supported. The RRF is actually part of the American Rescue Plan Act (ARPA), which was established in March 2021. 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. In January 2023, SBA stated that it was weighing potential solutions, such as adding functionality in the RRF platform to allow recipients to report their operating status. We recommended that SBA do so. 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. | 2 p.m. SBA stated that the results of the analysis are scheduled to be completed by March 2023. "We hear from restaurants and bars owners each day who applied for a grant and never received one. Apr 7, 2022. A large chunk of the bill, $42 billion, would replenish the Restaurant Revitalization Fund, a grant program launched as a result of the American Rescue Plan, which President Joe Biden signed into law last year. Let Restaurant Dive's free newsletter keep you informed, straight from your inbox. There comes a point where the right policy is: Stop smoothing. This program provides emergency assistance for eligible restaurants, bars, and other qualifying businesses impacted by COVID-19. 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. How many restaurants originally benefited from the Restaurant Revitalization Fund? CPF, documento de identificao ou Cdigo da Conta. The unions proposals often focus on specific changes to systems workers interact with all day, every day, including equipment and mobile ordering. Atendimento ao inscrito. The SBA closed the program and stopped accepting applications on July 2nd, 2021. Oops. The SBA is set to award an added $180 million in unspent funds allocated for the Restaurant Revitalization Fund (RRF) back in 2021. All of the funds had to be used for valid cases and claims up to March 11, 2023. The Relief for Restaurants and Other Hard Hit Small Businesses Act of 2022 (H.R. And stop digging. Would a grant recipient ever have to pay back any of the funds? SBA took steps to detect fraudulent or ineligible applications. In addition to restaurants and bars, eligible businesses include food trucks, bakeries, wineries or breweries and inns. The bill would also put $13 billion toward other businesses impacted by the COVID-19 crisis. 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. 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. From the recruitment of employees to the constantly rising costs for food, running a restaurant right now is a daily struggle. 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). But, then, weapons systems have been purchased because suppliers of components were spread across the country like tapenade on toast. According to the SBA, the RRF provided $28.6 billion to more than 100,000 restaurants, bars, and other businesses that provide on-site food and drink. Recipients cannot claim other expenses paid with RRF grant money as nonpayroll costs for purposes of PPP forgiveness. On April 7, 2022, the House passed H.R. RASI will only use your information to contact you about our products and services. For example, SBA considered applications made through external vendors to be low-risk, but over 4,000 recipients who applied through such a channel have been flagged for suspected fraud or ineligibility, including an alleged fraudster who received $8 million. 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. Even the Restaurant Revitalization Fund, with its paltry $28.6 billion in initial funding, wasnt enough to meaningfully help most establishments. 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. Restaurant Industry News and Resources in Georgia. More than 90,000 restaurants closed permanently or long-term because of the pandemic. The House already has passed H.R. However, in May, the Senate didnt pass the proposed increase, which was viewed by many as a setback. Nearly 1 year ago, the Restaurant Revitalization Fund (RFF) stopped taking applications. 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. 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 . GAO maintains that all of the recommendations are valid, as discussed in this report. 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. Well, then, what about that will-o-the-wisp, fairness? 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. Its an AI bot. All Applicants that do not fully expend award funds . This recommendation will remain open until SBA (1) provides documentation of its review, and (2) addresses or mitigates any deficiencies identified. Painel do Inscrito. Joanna Fantozzi | Apr 06, 2022. For more information, visitRestaurant.org and find us on Twitter@WeRRestaurants, Cision Distribution 888-776-0942 What are eligible expenses and restrictions that RRF grant recipients should know about? 3807), that included $42 billion to replenish the RRF, on April 7. So, in March 2021, seasonal compassion reinforced a political temptation for all seasons Congresss temptation to make life less unfair. Brands like Chipotle, McDonalds and Starbucksarewalking a tightrope charge enough to protect the bottom line without alienating customers. Is the grant money taxable and are the expenses deductible? Restaurant Revitalization Award Portal. 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. Past-due expenses qualify as RRF expenses. When typing in this field, a list of search results will appear and be automatically updated as you type. 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. Or 28,399 closures. Klicken Sie auf Alle ablehnen, wenn Sie nicht mchten, dass wir und unsere Partner Cookies und personenbezogene Daten fr diese zustzlichen Zwecke verwenden. The National Restaurant Association is asking Congress to replenish the Restaurant Revitalization Fund as the Covid omicron variant hits operators' businesses. Together with 52 State Associations, we are a network of professional organizations dedicated to serving every restaurant through advocacy, education, and food safety. There are several strategic . And SBA has not proactively used data analytics or information from enforcement entities to identify potentially fraudulent award 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.
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