Christian Britschgi is dubious. 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. Brands like Chipotle, McDonalds and Starbucksarewalking a tightrope charge enough to protect the bottom line without alienating customers. 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. 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 2020, independent locations declined by 8 percent, according to The NPD Group. But it flagged 4,000 award recipients for suspected fraud and isn't taking timely action to address them. Initially, nearly $29 billion was appropriated to award eligible restaurants and other establishments to help their businesses in the wake of the 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 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. The National Restaurant Association has been requesting these funds be released, and Executive Vice President of Public Affairs Sean Kennedy released the following statement in response: "The SBA's action represents the final chapter of our nearly three-year effort to secure dedicated federal pandemic relief dollars for local restaurants. The Small Business Administration (SBA) began accepting applications and awarding funds in May 2021. As a result, the U.S. Congress introduced legislation called the Restaurant Revitalization Fund (RRF) to help restaurants get back on their feet. 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. Lawmakers approved the measure in a 223-203 vote, with only about a handful of Republicans backing it. 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. In 2022, many RRF updates are in the works. 1101 W. Mineral Ave. Ste. 11 a 13 de maio de 2022 - Lavras/MG. Nevertheless, the Replenishment bill barely passed the House 223 to 203 in April, with only six Republicans favoring it and only four Democrats opposed. 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. 2023 Restaurant Accounting Services Inc. All Rights Reserved. By June 2021, the funds $28.6 billion had been disbursed to 100,000 applicants in grants averaging $283,000. How many restaurants originally benefited from the Restaurant Revitalization Fund? SBA stopped accepting applications in July 2021 with the program oversubscribed and almost all its funds disbursed. GAO maintains that all of the recommendations are valid, as discussed in this report. 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. "We must continue to look forward because the enormous challenges of the industry will continue beyond today. Operators receiving funds should receive notification today and SBA will begin transmitting the grants next week. Rep. Earl Blumenauer, D-Ore., the main sponsor of the bill, and Rep. Dean Phillips, D-Minn., said Thursday that more than 80 percent of restaurants that didn't receive grants have reported that they are on the verge of permanent closure, citing a survey from the Independent Restaurant Coalition. 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. They are on the verge of closing permanently as a result.". 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. Supply chain shortages are still a massive problem for restaurants, and the cost of doing business grows by the day. 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. 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. For instance, it prevented over 30,000 suspicious applications from receiving awards. GAO reviewed SBA documentation, analyzed SBA data on the program's applicants and recipients, and interviewed SBA officials and representatives of industry associations. In March 2021, Congress appropriated $28.6 billion to SBA for a Restaurant Revitalization Fund to assist the industry. 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 . 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. 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. Lawmakers. IE 11 is not supported. From the recruitment of employees to the constantly rising costs for food, running a restaurant right now is a daily struggle. 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. 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. 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. 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. 3807, the Restaurant Revitalization Fund Replenishment Act of 2021. 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." 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. RASI will only use your information to contact you about our products and services. 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. 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. The President has encouraged most people to stop wearing masks in indoor spaces, something that was unthinkable a year ago. In March 2021, Congress appropriated $28.6 billion to the Small Business Administration to help the food service industry weather the COVID-19 pandemic. For more information, please check out our Privacy Policy. The bill would also put $13 billion toward other businesses impacted by the COVID-19 crisis. According to the SBA, the grants are being released to operators in the order their applications were received. Restaurant owners plead for Congresss help after omicron surge. The unfortunate outcome however was that the demand for the funds was far greater than the supply. 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. Restaurant Revitalization Fund (RRF) Updates. ABC News reported on the story, where Anon explained how he was fed up with how sensitive people have gotten . 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. Cardin's bill, S.4008, would provide $40 billion in additional funding for the Restaurant Revitalization Fund. Publicly Released: Jul 14, 2022. Stay informed as we add new reports & testimonies. A similar attempt to refill the RRF was left out of the omnibus spending bill earlier this year. More than 90,000 restaurants closed permanently or long-term because of the pandemic. 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. Hence the Replenishment Act. The act illustrates a timeless truth legislative bargaining is additive. Get the free daily newsletter read by industry experts. 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. However, in May, the Senate didnt pass the proposed increase, which was viewed by many as a setback. Until these funds were used up, they were available for eligible entrepreneurs, establishments, and corporations. The Restaurant Revitalization Fund covered period begins on February 15, 2020 and ends on March 11, 2023. "After navigating an unpredictable supply chain, multiple COVID-19 surges, and dealing with revenue-hampering restrictions, these businesses have two years of crushing debt," Erika Polmar, the IRC's executive director, said in a statement. The Relief for Restaurants and Other Hard Hit Small Businesses Act of 2022 (H.R. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023. the aid could benefit? 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! A requirement for annual reporting submissions applies to any applicant who doesnt fully expend RRF grant funds before December 31, 2021. Expect to see many more restaurant closures in the coming months. Payroll costs claimed as ERTC eligible wages, Forgivable payroll expenses on the PPP forgiveness application, Nonpayroll expenses claimed on the PPP Forgiveness application. 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. In January 2023, SBA stated that it was reviewing 10% of RRF awards to confirm eligibility and use of funds compliance. The Association was first to lay out the plan for a restaurant industry recovery fund to Congress in April 2020. 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. Realizar Login. SBA emphasized pre-award controls to detect fraudulent or ineligible applications but has not assessed their effectiveness. For restaurants, its all but certain that the devastation will continue. 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. All of the funds had to be used for valid cases and claims up to March 11, 2023.
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