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.). As a restaurant owner, youve most definitely heard about the varying RRF updates throughout the last year, how they could possibly impact your establishment, and more. Lawmakers approved the measure in a 223-203 vote, with only about a handful of Republicans backing it. Its abundantly clear that the Biden administration considers the pandemic to be basically over. Realizar Login. 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). There are several strategic . Sie knnen Ihre Einstellungen jederzeit ndern, indem Sie auf unseren Websites und Apps auf den Link Datenschutz-Dashboard klicken. 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 . And it underscores the inevitable inequities that accompany large-scale government interventions in the economy. 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. 2023 Restaurant Accounting Services Inc. All Rights Reserved. If H.R. 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. The Restaurant Revitalization Fund was established in March 2021 to support eligible entities suffering revenue losses from the COVID-19 pandemic. 3807), that included $42 billion to replenish the RRF, on April 7. Follow. The restaurant industry reacts. In GovTrack.us, a database of bills in the U.S. Congress. As a result, the U.S. Congress introduced legislation called the Restaurant Revitalization Fund (RRF) to help restaurants get back on their feet. 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. Restaurant Revitalization Fund (RRF) Updates. H.R. This recommendation will remain open until SBA enhances its post-award reporting procedures to require recipients to report their operating status. 3807, the Restaurant Revitalization Fund Replenishment Act of 2021. Most recipients (72 percent) reported they were owned by women, veterans, or members of socially and economically disadvantaged groups. SBA took steps to detect fraudulent or ineligible applications. The number of people making reservations has also returned to 2019 levels. Furthermore, Bureau of Labor Statistics data shows that the 11 million people working in restaurants and bars in March 2022 was just 5 percent below the number in March 2019. Payroll costs claimed as ERTC eligible wages, Forgivable payroll expenses on the PPP forgiveness application, Nonpayroll expenses claimed on the PPP Forgiveness application. Even the Restaurant Revitalization Fund, with its paltry $28.6 billion in initial funding, wasn't enough to meaningfully help most establishments. This field is for validation purposes and should be left unchanged. 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. Do it again, but bigger. In 2020 and 2021, restaurants, bars, and other food service businesses experienced substantial revenue loss and unemployment resulting from the COVID-19 pandemic. Stay up to date on the news from Silicon Valley, and how to take back control of your data and devices. They have until March 2023 to spend the money. Copyright 2023 Sawyer Direct LLC | All Rights Reserved. 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. JUNE 2022: In 2022, many RRF updates are in the works. Open

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. Consider the House-passed, $55 billion Restaurant Revitalization Fund Replenishment Act, which could be the No Faction Left Behind Act.. The government closed restaurants and bars because they were considered particularly apt to endanger the public by spreading the coronavirus, so the public should compensate everyone for losses suffered on the publics behalf. Wenn Sie Ihre Auswahl anpassen mchten, klicken Sie auf Datenschutzeinstellungen verwalten. UPDATE: April 6, 2022:Sen. Benjamin Cardin (D-MD) introduced a bill similar to the one before the House Tuesday night. About 43 percent had 2019 revenue of $500,000 or less. Assessing controls and addressing deficiencies would help SBA better ensure program integrity. As a recap, the Restaurant Revitalization Fund was created to give restaurants and other hospitality-related businesses the financial assistance that they need to get through this world-wide pandemic.To ensure all types of restaurant owners receive funding, including smaller establishments and minority . 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. From independent operators to hospitality groups, most are disappointed and some are angry that there remains no federal aid to support struggling restaurants. This is not an infusion of funds into the RRF currently; in. 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. The CARES Act includes a provision for GAO to monitor federal efforts to respond to the COVID-19 pandemic. The Government Accountability Office (GAO) released a report in July, noting SBA was holding unobligated RRF funds and the Association was first to send a letter to SBA Administrator Isabella Casillas Guzman requesting that the unobligated money be released to unfunded applicants. 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 $55 billion bill would largely replenish a grant program created by the American Rescue Plan that provides assistance to restaurants. This government aide says it knows what voters want. About 40% of eligible applicants received awards from the resulting Restaurant Revitalization Fund before it was depleted. The American Rescue Plan created the Restaurant Revitalization Fund. 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. A vague, anti-drag bill in Tennessee has bar and restaurant owners worried for their future, By submitting your email, you agree to our, Congress Wont Send Any More Financial Aid to Restaurants Despite Pleas From the Industry, The Weird (and Wired) Truth Behind Whats Really in Coca-Cola, Why Coca-Cola contracts with a chemical company to manufacture cocaine in New Jersey, there was some hope that more money was coming, just about a third of the grant requests that it received because the demand was so great, exhortations from everyone from Tom Colicchio to Elizabeth Warren for Congress to provide aid to restaurants, that ongoing rise in the cost of doing business, Liquid Deaths New Tea Tallboys Are Coming for AriZonas Neck, If You Took the Drag Away, Then Its Just Another Boring Bar, How to Make Misis Iconic Ricotta-Filled Occhi Pasta. RASI will only use your information to contact you about our products and services. Cardin's bill, S.4008, would provide $40 billion in additional funding for the Restaurant Revitalization Fund. According to the SBA, the grants are being released to operators in the order their applications were received. For an optimal experience visit our site on another browser. While SBA prevented over 30,000 suspicious applications from receiving awards, GAO identified systemic control weaknesses. The Restaurant Revitalization Fund covered period begins on February 15, 2020 and ends on March 11, 2023. 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. 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. 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. 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. "We must continue to look forward because the enormous challenges of the industry will continue beyond today. Four mistakes youre making with home internet. 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. This plan should include coordinating with the OIG. 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. 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. Past-due expenses qualify as RRF expenses. 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. In March 2021, Congress appropriated $28.6 billion to the Small Business Administration to help the food service industry weather the COVID-19 pandemic. And stop digging. In January 2023, SBA stated that it follows standard operating procedures to refer suspicious activity to the OIG. On April 7, 2022, the House passed H.R. (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. 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. 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. Painel do Inscrito. According to the SBA, they received more than 278,000 applications by June 30th, 2021, seeking more than $72.2 billion in funding. Both political parties agreed that the RRF should be replenished but couldn't reach a consensus on how to pay for it. Keep reading to learn more about RRF grant updates, eligibility, RRF forgiveness, and more. Brands like Chipotle, McDonalds and Starbucksarewalking a tightrope charge enough to protect the bottom line without alienating customers. Restaurant Revitalization Fund What's the impact of the Senate's failure to pass RRF? Oops. Published May 24, 2022 Thai Phi Le Senior Managing Editor Until these funds were used up, they were available for eligible entrepreneurs, establishments, and corporations. 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. 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. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023. (Recommendation 2), The Associate Administrator for the Office of Capital Access should develop and implement policies and procedures for addressing RRF recipients who do not meet annual reporting requirements. From the recruitment of employees to the constantly rising costs for food, running a restaurant right now is a daily struggle. The bill would provide $42 billion to replenish the RRF. The restaurant industry was the hardest hit by the pandemic. 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. What is the timeframe for using the RRF grant money? 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 President has encouraged most people to stop wearing masks in indoor spaces, something that was unthinkable a year ago. 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. The Small Business Administration (SBA) began accepting applications and awarding funds in May 2021. It should take place Monday or Tuesday . The American Rescue Plan created the Restaurant Revitalization Fund. Nevertheless, the Replenishment bill barely passed the House 223 to 203 in April, with only six Republicans favoring it and only four Democrats opposed. (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. 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. The Association was first to lay out the plan for a restaurant industry recovery fund to Congress in April 2020.

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