Recipients cannot claim wages paid with RRF grant money as wages for purposes of the ERTC or PPP forgiveness. (Recommendation 3), The Associate Administrator for the Office of Capital Access should enhance RRF post-award reporting procedures by adding requirements for recipients to report their operating status. But, then, weapons systems have been purchased because suppliers of components were spread across the country like tapenade on toast. For restaurants, its all but certain that the devastation will continue. IE 11 is not supported. CPF, documento de identificao ou Cdigo da Conta. 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. Keep reading to learn more about RRF grant updates, eligibility, RRF forgiveness, and more. Use of Funds Validation is now available for Restaurant Revitalization Fund awardees. 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. The Restaurant Revitalization Fund was established in March 2021 to support eligible entities suffering revenue losses from the COVID-19 pandemic. (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. 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. The bill also would provide $13 billion for a Hard Hit Industries Award Program for small 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. 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. Nova Inscrio. 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. 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. It's unclear whether Democrats in the evenly split Senate will be able to win over at least 10 Republicans to overcome the 60-vote threshold to end any potential filibuster and pass the measure. Something went wrong. Congress eventually set aside $28.6 billion dollars for the RRF in the American Rescue Plan Act. Recipients cannot claim other expenses paid with RRF grant money as nonpayroll costs for purposes of PPP forgiveness. 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. 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. Copyright 2023 Sawyer Direct LLC | All Rights Reserved. Realizar Login. 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. 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. 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. Restaurant Revitalization Fund What's the impact of the Senate's failure to pass RRF? This recommendation will remain open until SBA develops and implements a plan to respond to potentially fraudulent and ineligible awards in a prompt manner. There are several strategic . 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. Past-due expenses qualify as RRF expenses. Lawmakers approved the measure in a 223-203 vote, with only about a handful of Republicans backing it. Optimal accounting solutions for small, medium, multi-unit concept, franchise, and enterprise restaurant operators. Number of Restaurant Revitalization Fund Applications by Eligibility and Funding Status. 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.". Its abundantly clear that the Biden administration considers the pandemic to be basically over. 3807), which would refill the Restaurant Revitalization Fund with $42 billion,was reintroduced in. Dont do that. This recommendation will remain open until SBA provides evidence of conducting data analytics across RRF awards to detect potentially fraudulent recipients. We recommended that SBA do so. 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.). Consider the House-passed, $55 billion Restaurant Revitalization Fund Replenishment Act, which could be the No Faction Left Behind Act.. But it flagged 4,000 award recipients for suspected fraud and isn't taking timely action to address them. They have until March 2023 to spend the money. For more information about the SBA, visit sba.gov. GAO reviewed SBA documentation, analyzed SBA data on the program's applicants and recipients, and interviewed SBA officials and representatives of industry associations. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023. This recommendation will remain open until SBA enhances its post-award reporting procedures to require recipients to report their operating status. In 2020, independent locations declined by 8 percent, according to The NPD Group. This program provides emergency assistance for eligible restaurants, bars, and other qualifying businesses impacted by COVID-19. In 2022, many RRF updates are in the works. Outdoor diners at the Bit and Spur Saloon in Springdale, Utah, in summer 2020. 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). According to the SBA, they received more than 278,000 applications by June 30th, 2021, seeking more than $72.2 billion in funding. Senha. And it underscores the inevitable inequities that accompany large-scale government interventions in the economy. In the wake of the COVID-19 pandemic, restrictions on gathering and other crowd control measures had a huge impact on restaurant owners. This plan should include coordinating with the OIG to align efforts to address fraud. An estimated 90,000 restaurants have already closed their doors during the pandemic, and that number will likely continue to grow. 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. (Recommendation 1), The Associate Administrator for the Office of Capital Access should assess how the design of RRF pre-award controls may have adversely affected applicants from U.S. territories, and identify and document steps to mitigate this issue for future programs. 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. The U.S. Small Business Administration (SBA) is releasing $83 million in leftover Restaurant Revitalization Fund (RRF) aid to restaurateurs who were denied assistance in 2021 because the program burned through most of its $28.6 billion in about three weeks. 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. Supply chain shortages are still a massive problem for restaurants, and the cost of doing business grows by the day. A similar attempt to refill the RRF was left out of the omnibus spending bill earlier this year. 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. The freshest news from the food world every day. The Restaurant Revitalization Fund covered period begins on February 15, 2020 and ends on March 11, 2023. 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. SBA disagreed with five recommendations, including to assess pre-award controls and implement a plan to address fraudulent or ineligible awards. Washington, D.C. - The National Restaurant Association today sent a letter to Congressional leadership encouraging passage of Restaurant Revitalization Fund (RRF) Replenishment if the program comes up for a vote this week. SBA took steps to detect fraudulent or ineligible applications. 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. 11 a 13 de maio de 2022 - Lavras/MG. The CARES Act includes a provision for GAO to monitor federal efforts to respond to the COVID-19 pandemic. This recommendation will remain open until SBA (1) provides documentation of its review, and (2) addresses or mitigates any deficiencies identified. While SBA prevented over 30,000 suspicious applications from receiving awards, GAO identified systemic control weaknesses. About 40% of eligible applicants received awards from the resulting Restaurant Revitalization Fund before it was depleted. Painel do Inscrito. 3807, the Restaurant Revitalization Fund Replenishment Act of 2021. 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. But what about those other small businesses (gyms, minor league baseball, etc.) 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. In January 2023, SBA stated that recipients have until March 2023 to exhaust RRF funds. And by the third quarter of 2021, Britschgi writes, the number of restaurants had surpassed pre-pandemic levels.. 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. 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. UPDATE: April 6, 2022:Sen. Benjamin Cardin (D-MD) introduced a bill similar to the one before the House Tuesday night. Let Restaurant Dive's free newsletter keep you informed, straight from your inbox. This field is for validation purposes and should be left unchanged. 200Littleton, Colorado 80120. In 2020 and 2021, restaurants, bars, and other food service businesses experienced substantial revenue loss and unemployment resulting from the COVID-19 pandemic. The $55 billion bill would largely replenish a grant program created by the American Rescue Plan that provides assistance to restaurants. 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 . Weitere Informationen ber die Verwendung Ihrer personenbezogenen Daten finden Sie in unserer Datenschutzerklrung und unserer Cookie-Richtlinie. Copyright 1999 2023 GoDaddy Operating Company, LLC. U.S. Small Business Administration RRF Award Portal, Restaurant Revitalization Funding Program. And stop digging. 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."