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. About the National Restaurant AssociationFounded in 1919, the National Restaurant Association is the leading business association for the restaurant industry, which comprises nearly 1 million restaurant and foodservice outlets and a workforce of 14.5 million employees. Access from your Country was disabled by the administrator. There comes a point where the right policy is: Stop smoothing. 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. 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. An estimated 90,000 restaurants have already closed their doors during the pandemic, and that number will likely continue to grow. In 2020 and 2021, restaurants, bars, and other food service businesses experienced substantial revenue loss and unemployment resulting from the COVID-19 pandemic. GAO reviewed SBA documentation, analyzed SBA data on the program's applicants and recipients, and interviewed SBA officials and representatives of industry associations. 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. Number of Restaurant Revitalization Fund Applications by Eligibility and Funding Status. What to do? Stay informed as we add new reports & testimonies. The SBA is set to award an added $180 million in unspent funds allocated for the Restaurant Revitalization Fund (RRF) back in 2021. The bill would also put $13 billion toward other businesses impacted by the COVID-19 crisis. As such, well continue to see the consequences of that failure in the coming months. The bill also would provide $13 billion for a Hard Hit Industries Award Program for small Restaurant Revitalization Fund (RRF) Updates - August 2022 97 views Aug 29, 2022 0 Dislike Share RASI - Restaurant Accounting Services Inc 494 subscribers The SBA is set to award an. Will an injustice be done if, with the pandemic receding and the economy reviving, nothing is done for those who missed out in the first-come-first-served scramble for the initial (and perhaps final) $28 billion? 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. What are eligible expenses and restrictions that RRF grant recipients should know about? 3807 or, the Relief for Restaurants and other Hard Hit Small Businesses Act of 2022, which would provide about $42 billion to provide fresh funding for the RRF . Nova Inscrio. The act illustrates a timeless truth legislative bargaining is additive. What is the timeframe for using the RRF grant money? From the recruitment of employees to the constantly rising costs for food, running a restaurant right now is a daily struggle. The SBA, which had $83 million in unobligated RFF money worked with the advice of the Department of Justice to begin distributing the remaining funds to 169 restaurant operators with pending RRF applications. LOOK What Happened When This Restaurant Posted a Politically Incorrect Sign. However, in May, the Senate didn't pass the proposed increase, which was viewed by many as a setback. "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. 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. CPF, documento de identificao ou Cdigo da Conta. 3807 (117th). Payroll costs claimed as ERTC eligible wages, Forgivable payroll expenses on the PPP forgiveness application, Nonpayroll expenses claimed on the PPP Forgiveness application. 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. 3807), which would refill the Restaurant Revitalization Fund with $42 billion,was reintroduced in. 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. SBA disagreed with five recommendations, including to assess pre-award controls and implement a plan to address fraudulent or ineligible awards. Do it again, but bigger. 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. Outdoor diners at the Bit and Spur Saloon in Springdale, Utah, in summer 2020. 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. Please enter a valid email and try again. But what about those other small businesses (gyms, minor league baseball, etc.) Restaurant Revitalization Fund Award Disbursements, May 3July 1, 2021. 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 age of the Silicon Valley moonshot is over. They are on the verge of closing permanently as a result.". Operators receiving funds should receive notification today and SBA will begin transmitting the grants next week. Apr 7, 2022. 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. Sie knnen Ihre Einstellungen jederzeit ndern, indem Sie auf unseren Websites und Apps auf den Link Datenschutz-Dashboard klicken. Less than 10 days after the SBA launched the RRF Portal, the applications submitted equated to more than twice the amount of funds available. Both political parties agreed that the RRF should be replenished but couldn't reach a consensus on how to pay for it. 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. Senha. Wenn Sie Ihre Auswahl anpassen mchten, klicken Sie auf Datenschutzeinstellungen verwalten. For more information, please check out our Privacy Policy. H.R. They have until March 2023 to spend the money. 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. No later than December 31, 2021, all recipients are required to report to the SBA how much of their RRF grant has been used against each eligible use category. And it underscores the inevitable inequities that accompany large-scale government interventions in the economy. Congress eventually set aside $28.6 billion dollars for the RRF in the American Rescue Plan Act. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023. Restaurant owners plead for Congresss help after omicron surge. More than 90,000 restaurants closed permanently or long-term because of the pandemic. By June 2021, the funds $28.6 billion had been disbursed to 100,000 applicants in grants averaging $283,000. Priority is to be provided to previous RRF applicants that did not receive an award. Past-due expenses qualify as RRF expenses. Cardin's bill, S.4008, would provide $40 billion in additional funding for the Restaurant Revitalization Fund. 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. Among its objectives, this report examines recipient characteristics, SBA's internal controls and fraud risk management practices, and SBA's efforts to monitor recipients. This recommendation will remain open until SBA enhances its post-award reporting procedures to require recipients to report their operating status. The House passed the Relief for Restaurants and other Hard Hit Small Businesses Act of 2022 (H.R. 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. Would a grant recipient ever have to pay back any of the funds? 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. (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. Most applicants got to the trough too late, when it was empty. Arriving as federal spending has driven inflation to a 40-year high, the Replenishment Act indicates disregard for this rule: When you are in a hole, quit digging. All Applicants that do not fully expend award funds . The freshest news from the food world every day. And stop digging. RASI will only use your information to contact you about our products and services. IE 11 is not supported. 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. Restaurant Revitalization Fund (RRF) Updates. SBA took steps to detect fraudulent or ineligible applications. The House already has passed H.R. Or 28,399 closures. Recipients cannot claim wages paid with RRF grant money as wages for purposes of the ERTC or PPP forgiveness. The first reports were due in December 2021, but 32 percent were overdue as of June 2022. Even the Restaurant Revitalization Fund, with its paltry $28.6 billion in initial funding, wasnt enough to meaningfully help most establishments. The unfortunate outcome however was that the demand for the funds was far greater than the supply. About 43 percent had 2019 revenue of $500,000 or less. Taking additional steps to identify and address potentially fraudulent awards in a timely manner could help SBA recover funds. To amend the American Rescue Plan Act of 2021 to increase appropriations to the Restaurant Revitalization Fund, and for other purposes. The Small Business Administration (SBA) began accepting applications and awarding funds in May 2021. Initially, nearly $29 billion was appropriated to award eligible restaurants and other establishments to help their businesses in the wake of the pandemic. The SBA has contacted recipients of the awards. H.R.3807 - Restaurant Revitalization Fund Replenishment Act of 2021 117th Congress (2021-2022) Bill Hide Overview More on This Bill Constitutional Authority Statement CBO Cost Estimates [0] Subject Policy Area: Commerce View subjects Give Feedback on This Bill Contact Your Member Summary (2) Text (3) Actions (17) Titles (3) Amendments (1) Restaurant owners have taken on substantial debt and tapped into their own savings accounts, just in an effort to keep the doors open. In addition to restaurants and bars, eligible businesses include food trucks, bakeries, wineries or breweries and inns. Follow. So, in March 2021, seasonal compassion reinforced a political temptation for all seasons Congresss temptation to make life less unfair. 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. 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 the aid could benefit? 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. LISTEN TO THE QUICK UPDATE PODCAST BELOW!
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.Matt Rubano Shallon Lester,
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