The SBA closed the program and stopped accepting applications on July 2nd, 2021. Or 28,399 closures. Let Restaurant Dive's free newsletter keep you informed, straight from your inbox. This plan should include coordinating with the OIG to align efforts to address fraud. 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. 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. When typing in this field, a list of search results will appear and be automatically updated as you type. This recommendation will remain open until SBA provides evidence of conducting data analytics across RRF awards to detect potentially fraudulent recipients. SBA stated that the results of the analysis are scheduled to be completed by March 2023. 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. And stop digging. So, in March 2021, seasonal compassion reinforced a political temptation for all seasons Congresss temptation to make life less unfair. 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. How many restaurants originally benefited from the Restaurant Revitalization Fund? 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. SBA took steps to detect fraudulent or ineligible applications. 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. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023. Cardin's bill, S.4008, would provide $40 billion in additional funding for the Restaurant Revitalization Fund. Senha. It is axiomatic that the titles of congressional bills, like the titles of Marx Brothers movies (Duck Soup, Horse Feathers), are not scrupulously informative. By June 2021, the funds $28.6 billion had been disbursed to 100,000 applicants in grants averaging $283,000. LOOK What Happened When This Restaurant Posted a Politically Incorrect Sign. Restaurant Revitalization Award Portal. By the time it closed in July 2021, the RRF. Outdoor diners at the Bit and Spur Saloon in Springdale, Utah, in summer 2020. For more information, please check out our Privacy Policy. 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's the impact of the Senate's failure to pass RRF? The restaurant About 43 percent had 2019 revenue of $500,000 or less. Please enter a valid email and try again. To amend the American Rescue Plan Act of 2021 to increase appropriations to the Restaurant Revitalization Fund, and for other purposes. The median award was about $126,000. 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). 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. Nova Inscrio. Keep reading to learn more about RRF grant updates, eligibility, RRF forgiveness, and more. According to the Small Business Administration, which handles the fund, restaurants and other eligible businesses can receive funding "equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location." 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. There comes a point where the right policy is: Stop smoothing. A similar attempt to refill the RRF was left out of the omnibus spending bill earlier this year. The NRA wrote a letter to Congress on Monday urging policymakers to pass legislation that would refill the fund. 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. This recommendation will remain open until SBA develops and implements policies and procedures for addressing RRF award recipients who do not meet annual reporting requirements. The SBA will work with the Department of Justice to disburse the money, according to the NRA. H.R. 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! 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. Restaurant Revitalization Fund Replenishment Act of 2021 (2022; 117th Rescuing restaurants (again) ought to give Congress indigestion 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. In addition to restaurants and bars, eligible businesses include food trucks, bakeries, wineries or breweries and inns. The SBA has contacted recipients of the awards. "We hear from restaurants and bars owners each day who applied for a grant and never received one. 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. 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.. 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. GAO maintains that all of the recommendations are valid, as discussed in this report. Christian Britschgi is dubious. It should take place Monday or Tuesday . Would a grant recipient ever have to pay back any of the funds? 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. The President has encouraged most people to stop wearing masks in indoor spaces, something that was unthinkable a year ago. Realizar Login. 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. 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. Nevertheless, the Replenishment bill barely passed the House 223 to 203 in April, with only six Republicans favoring it and only four Democrats opposed. Access from your Country was disabled by the administrator. Updated August 15, 2022 SBA Restaurant Revitalization Fund Grants 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. 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 (117th). National Restaurant Association Statement on the Release of $83 Million In 2020 and 2021, restaurants, bars, and other food service businesses experienced substantial revenue loss and unemployment resulting from the COVID-19 pandemic. And by the third quarter of 2021, Britschgi writes, the number of restaurants had surpassed pre-pandemic levels.. Restaurant Revitalization Fund What's the impact of the Senate's failure to pass RRF? the aid could benefit? (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. In January 2023, SBA stated that it was reviewing 10% of RRF awards to confirm eligibility and use of funds compliance. Among its objectives, this report examines recipient characteristics, SBA's internal controls and fraud risk management practices, and SBA's efforts to monitor recipients. 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. 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. Is another round of the Restaurant Revitalization Fund coming? The RRF is actually part of the American Rescue Plan Act (ARPA), which was established in March 2021. 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. 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). 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. Restaurant Revitalization Fund National Restaurant Association asks Congress for aid amid omicron Stay informed as we add new reports & testimonies. Ninety-six percent of RRFrecipients said the grant made it more likely that their business would survive. The Restaurant Revitalization Fund covered period begins on February 15, 2020 and ends on March 11, 2023. 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). 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. 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. Its an AI bot. In the initial shutdowns, more than eight million industry employees were laid off or furloughed. Optimal accounting solutions for small, medium, multi-unit concept, franchise, and enterprise restaurant operators. Something went wrong. This will remain until they fully expend the grant funding or the covered period expires. 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.". What to do? Do it again, but bigger. 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. The recipient has until March 11th of 2023 to use the RRF grant unless the business has permanently closed. UPDATE: April 6, 2022:Sen. Benjamin Cardin (D-MD) introduced a bill similar to the one before the House Tuesday night. SBA emphasized pre-award controls to detect fraudulent or ineligible applications but has not assessed their effectiveness.
Actions to satisfy the intent of the recommendation have not been taken or are being planned.
, Executive Candidate Assessment and Development Program, Business Regulation and Consumer Protection, The Associate Administrator for the Office of Capital Access should conduct and document an assessment of the RRF pre-award controls and address or mitigate deficiencies. There had, however, been 278,304 applicants seeking $72 billion. Writing for Reason, he noted six weeks ago that Open Table, the reservation app, shows that close to 95 percent of restaurants open in 2019 are back to accepting reservations. All of the funds had to be used for valid cases and claims up to March 11, 2023. The National Restaurant Association is asking Congress to replenish the Restaurant Revitalization Fund as the Covid omicron variant hits operators' businesses. About 40% of eligible applicants received awards from the resulting Restaurant Revitalization Fund before it was depleted. Recipients cannot claim wages paid with RRF grant money as wages for purposes of the ERTC or PPP forgiveness. Washington has succumbed to dangerous groupthink on China, Google releases civil rights review, caving to years of pressure.