SBA stated that the results of the analysis are scheduled to be completed by March 2023. Restaurant Revitalization Fund What's the impact of the Senate's failure to pass RRF? Four mistakes youre making with home internet. In the initial shutdowns, more than eight million industry employees were laid off or furloughed. Do it again, but bigger. 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. (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. According to the SBA, the grants are being released to operators in the order their applications were received. Published: Jul 14, 2022. Lawmakers ask SBA for disbursement plan for $180M RRF leftovers 11 a 13 de maio de 2022 - Lavras/MG. This program provides emergency assistance for eligible restaurants, bars, and other qualifying businesses impacted by COVID-19. Nova Inscrio. For more information, visitRestaurant.org and find us on Twitter@WeRRestaurants, Cision Distribution 888-776-0942 This plan should include coordinating with the OIG. However, in May, the Senate didnt pass the proposed increase, which was viewed by many as a setback. This recommendation will remain open until SBA enhances its post-award reporting procedures to require recipients to report their operating status. SBA agreed or partially agreed with two recommendations. "I think right now it's hard to as you saw, even with the $10 billion package of new money for Covid unless they can reprogram or repurpose it, it's going to be a hard sell," he said Thursday afternoon as he exited Capitol. Painel do Inscrito. 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 Latest Restaurant Revitalization Fund (RRF) Updates UPDATE: April 6, 2022:Sen. Benjamin Cardin (D-MD) introduced a bill similar to the one before the House Tuesday night. All Applicants that do not fully expend award funds . RASI will only use your information to contact you about our products and services. The President has encouraged most people to stop wearing masks in indoor spaces, something that was unthinkable a year ago. 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. 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. What are eligible expenses and restrictions that RRF grant recipients should know about? The nation has never experienced as large and abrupt an intervention as the cumulative federal and state lockdowns of commercial activity imposed when covid-19 surged in 2020. And stop digging. Outdoor diners at the Bit and Spur Saloon in Springdale, Utah, in summer 2020. 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! Something went wrong. Most applicants got to the trough too late, when it was empty. Brands like Chipotle, McDonalds and Starbucksarewalking a tightrope charge enough to protect the bottom line without alienating customers. What is the timeframe for using the RRF grant money? Payroll costs claimed as ERTC eligible wages, Forgivable payroll expenses on the PPP forgiveness application, Nonpayroll expenses claimed on the PPP Forgiveness application. 1101 W. Mineral Ave. Ste. 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. A similar attempt to refill the RRF was left out of the omnibus spending bill earlier this year. The SBA will work with the Department of Justice to disburse the money, according to the NRA. From the recruitment of employees to the constantly rising costs for food, running a restaurant right now is a daily struggle. In the wake of the COVID-19 pandemic, restrictions on gathering and other crowd control measures had a huge impact on restaurant owners. Past-due expenses qualify as RRF expenses. "With the looming threat of another variant and growing challenges of inflation for both operators and consumers, the economic boost RRF will provide for those 177,000 restaurants would reach far into our communities," Sean Kennedy, NRA's executive vice president of public affairs, wrote in the letter. Christian Britschgi is dubious. What to do? 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. 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. There are several strategic . Klicken Sie auf Alle ablehnen, wenn Sie nicht mchten, dass wir und unsere Partner Cookies und personenbezogene Daten fr diese zustzlichen Zwecke verwenden. 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). | 2 p.m. The Restaurant Revitalization Fund was established in March 2021 to support eligible entities suffering revenue losses from the COVID-19 pandemic. 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. The Restaurant Revitalization Fund was established in March 2021 to support eligible entities suffering revenue losses from the COVID-19 pandemic. They are on the verge of closing permanently as a result.". With so many questions surrounding the RRF, we created this resource and guide to provide answers. (Recommendation 7), Restaurant Revitalization Fund: Opportunities Exist to Improve Oversight. The RRF is actually part of the American Rescue Plan Act (ARPA), which was established in March 2021. The bill also would provide $13 billion for a Hard Hit Industries Award Program for small Updates to the Restaurant Revitalization Fund - ARF Financial Painel do Inscrito. The age of the Silicon Valley moonshot is over. The House passed the Relief for Restaurants and other Hard Hit Small Businesses Act of 2022 (H.R. LISTEN TO THE QUICK UPDATE PODCAST BELOW! According to the letter, while the rest of the economy continues to quickly add jobs, restaurant industry job growth in . Until these funds were used up, they were available for eligible entrepreneurs, establishments, and corporations. 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 covered period begins on February 15, 2020 and ends on March 11, 2023. ), buses and ferries, etc. Please enter a valid email and try again. In January 2023, SBA stated that it was reviewing 10% of RRF awards to confirm eligibility and use of funds compliance. Sie knnen Ihre Einstellungen jederzeit ndern, indem Sie auf unseren Websites und Apps auf den Link Datenschutz-Dashboard klicken. from 8 AM - 9 PM ET. It should take place Monday or Tuesday . 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. Nevertheless, the Replenishment bill barely passed the House 223 to 203 in April, with only six Republicans favoring it and only four Democrats opposed. 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. For restaurants, its all but certain that the devastation will continue. 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. That is a serious consideration. 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. SBA emphasized pre-award controls to detect fraudulent or ineligible applications but has not assessed their effectiveness. Among its objectives, this report examines recipient characteristics, SBA's internal controls and fraud risk management practices, and SBA's efforts to monitor recipients. In January 2023, SBA stated that recipients have until March 2023 to exhaust RRF funds. By June 2021, the fund's $28.6 billion had been disbursed to 100,000 applicants in grants averaging $283,000. 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. But, then, weapons systems have been purchased because suppliers of components were spread across the country like tapenade on toast. There comes a point where the right policy is: Stop smoothing. The Relief for Restaurants and Other Hard Hit Small Businesses Act of 2022 (H.R. If H.R. This recommendation will remain open until SBA provides evidence of conducting data analytics across RRF awards to detect potentially fraudulent recipients. 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. "We hear from restaurants and bars owners each day who applied for a grant and never received one. While SBA prevented over 30,000 suspicious applications from receiving awards, GAO identified systemic control weaknesses. Nearly 1 year ago, the Restaurant Revitalization Fund (RFF) stopped taking applications. Recipients cannot claim wages paid with RRF grant money as wages for purposes of the ERTC or PPP forgiveness. 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. 200Littleton, Colorado 80120. Even the Restaurant Revitalization Fund, with its paltry $28.6 billion in initial funding, wasn't enough to meaningfully help most establishments. SBA disagreed with five recommendations, including to assess pre-award controls and implement a plan to address fraudulent or ineligible awards. 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. Apr 7, 2022. 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. And SBA has not proactively used data analytics or information from enforcement entities to identify potentially fraudulent award recipients. 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 . 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. 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 SBA closed the program and stopped accepting applications on July 2nd, 2021. After congress walked away from the funds replenishment in March 2022 and the Senate failed to pass the replenishment in May 2022, 177,000 establishments were left without aid. Priority is to be provided to previous RRF applicants that did not receive an award. In January 2023, SBA stated that it would offer to participate in a government-wide dialogue to address systemic weaknesses related to IRS and territories' tax validation systems. By the time it closed in July 2021, the RRF. Rebecca Shabad is a politics reporter for NBC News based in Washington. 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. Hence the Replenishment Act. Let Restaurant Dive's free newsletter keep you informed, straight from your inbox. This recommendation will remain open until SBA develops and implements a plan to respond to potentially fraudulent and ineligible awards in a prompt manner. The $55 billion bill would largely replenish a grant program created by the American Rescue Plan that provides assistance to restaurants. 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? 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.. Follow. For an optimal experience visit our site on another browser. The restaurant industry reacts. National Restaurant Association asks Congress for aid amid omicron Restaurant Revitalization Fund Replenishment Act of 2021 (2022; 117th Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023. Get the free daily newsletter read by industry experts. 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. In 2020 and 2021, restaurants, bars, and other food service businesses experienced substantial revenue loss and unemployment resulting from the COVID-19 pandemic. Restaurant Revitalization Award Portal. Rescuing restaurants (again) ought to give Congress indigestion Nearly 300,000 restaurants and bars applied for grants through the program last year, according to the Small Business Administration, but only a third of applicants received relief. 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 bill would provide $42 billion to replenish the RRF. 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. In March 2021, Congress appropriated $28.6 billion to the Small Business Administration to help the food service industry weather the COVID-19 pandemic. Even the Restaurant Revitalization Fund, with its paltry $28.6 billion in initial funding, wasnt enough to meaningfully help most establishments. Published May 24, 2022 Thai Phi Le Senior Managing Editor 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. (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. Cardin's bill, S.4008, would provide $40 billion in additional funding for the Restaurant Revitalization Fund. 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. They said at least 90,000 restaurants and bars have closed since the pandemic started more than two years ago. The Small Business Administration (SBA) began accepting applications and awarding funds in May 2021. 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. SBA stopped accepting applications in July 2021 with the program oversubscribed and almost all its funds disbursed. 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. In addition to restaurants and bars, eligible businesses include food trucks, bakeries, wineries or breweries and inns. The American Rescue Plan created the Restaurant Revitalization Fund. For example, SBA considered applications made through external vendors to be low-risk, but over 4,000 recipients who applied through such a channel have been flagged for suspected fraud or ineligibility, including an alleged fraudster who received $8 million. The SBA is set to award an added $180 million in unspent funds allocated for the Restaurant Revitalization Fund (RRF) back in 2021. Copyright 2023 Sawyer Direct LLC | All Rights Reserved. Make Your Nomination for Restaurant Informers 2023, Lapeer Steak and Seafood Lands New Executive Chef McAlpine, Payback Time: What To Do About Your PPP or EIDL Loan, Georgia Hospitality Expo & ProStart Invitational 2023. Publicly Released: Jul 14, 2022. 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. Restaurant owners plead for Congresss help after omicron surge. Would a grant recipient ever have to pay back any of the funds? Its abundantly clear that the Biden administration considers the pandemic to be basically over. Most recipients (72 percent) reported they were owned by women, veterans, or members of socially and economically disadvantaged groups. Washington has succumbed to dangerous groupthink on China, Google releases civil rights review, caving to years of pressure. SBA requires recipients to report annually on fund use, but has taken limited steps to enforce reporting requirements and identify fraudulent or ineligible awards. As a result, the U.S. Congress introduced legislation called the Restaurant Revitalization Fund (RRF) to help restaurants get back on their feet. 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. 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. 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). 3807), which would refill the Restaurant Revitalization Fund with $42 billion,was reintroduced in. SBA releases $83M in additional RRF aid So, in March 2021, seasonal compassion reinforced a political temptation for all seasons Congresss temptation to make life less unfair. For more information about the SBA, visit sba.gov. 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. 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. For instance, it prevented over 30,000 suspicious applications from receiving awards. After this money was distributed, more than 177,000 applications were left in limbo at the SBA. And by the third quarter of 2021, Britschgi writes, the number of restaurants had surpassed pre-pandemic levels.. If the business permanently closes, the covered period will end when the business permanently closes; or, on March 11, 2023 whichever occurs sooner. Congress is voting on a $42 billion Restaurant Revitalization Fund 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). H.R.3807 - 117th Congress (2021-2022): Restaurant Revitalization Fund (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. 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.