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. 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. They are on the verge of closing permanently as a result.". 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? This recommendation will remain open until SBA develops and implements a plan to respond to potentially fraudulent and ineligible awards in a prompt manner. This plan should include coordinating with the OIG to align efforts to address fraud. Restaurant Revitalization Fund (RRF) Updates. Among its objectives, this report examines recipient characteristics, SBA's internal controls and fraud risk management practices, and SBA's efforts to monitor recipients. "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. If H.R. Senha. So, in March 2021, seasonal compassion reinforced a political temptation for all seasons Congresss temptation to make life less unfair. In 2020, independent locations declined by 8 percent, according to The NPD Group. And it underscores the inevitable inequities that accompany large-scale government interventions in the economy. 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. Even the Restaurant Revitalization Fund, with its paltry $28.6 billion in initial funding, wasn't enough to meaningfully help most establishments. Lawmakers approved the measure in a 223-203 vote, with only about a handful of Republicans backing it. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023. The freshest news from the food world every day. Published: Jul 14, 2022. This government aide says it knows what voters want. The Restaurant Revitalization Fund was established in March 2021 to support eligible entities suffering revenue losses from the COVID-19 pandemic. In the wake of the COVID-19 pandemic, restrictions on gathering and other crowd control measures had a huge impact on restaurant owners. All of the funds had to be used for valid cases and claims up to March 11, 2023. They have until March 2023 to spend the money. In 2022, many RRF updates are in the works. 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. 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. If the business permanently closes, the covered period will end when the business permanently closes; or, on March 11, 2023 whichever occurs sooner. Copyright 2023 Sawyer Direct LLC | All Rights Reserved. An estimated 90,000 restaurants have already closed their doors during the pandemic, and that number will likely continue to grow. The House is expected to vote on the bill,which has a mix of 234 Democratic and Republican sponsors, this week. In the initial shutdowns, more than eight million industry employees were laid off or furloughed. Initially, nearly $29 billion was appropriated to award eligible restaurants and other establishments to help their businesses in the wake of the pandemic. How many restaurants originally benefited from the 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).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 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. There are steps the government can take to support restaurants in every community, and we will continue to press for solutions at the federal, state, and local level.". Follow. Something went wrong. Would a grant recipient ever have to pay back any of the funds? Restaurant owners have taken on substantial debt and tapped into their own savings accounts, just in an effort to keep the doors open. Let Restaurant Dive's free newsletter keep you informed, straight from your inbox. The recipient has until March 11th of 2023 to use the RRF grant unless the business has permanently closed. The House passed the Relief for Restaurants and other Hard Hit Small Businesses Act of 2022 (H.R. 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. As a result, the U.S. Congress introduced legislation called the Restaurant Revitalization Fund (RRF) to help restaurants get back on their feet. 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 requires recipients to report annually on fund use, but has taken limited steps to enforce reporting requirements and identify fraudulent or ineligible awards. Its abundantly clear that the Biden administration considers the pandemic to be basically over. With so many questions surrounding the RRF, we created this resource and guide to provide answers. Supply chain shortages are still a massive problem for restaurants, and the cost of doing business grows by the day. "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. (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. Optimal accounting solutions for small, medium, multi-unit concept, franchise, and enterprise restaurant operators. The Small Business Administration (SBA) began accepting applications and awarding funds in May 2021. 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 . The SBA is set to award an added $180 million in unspent funds allocated for the Restaurant Revitalization Fund (RRF) back in 2021. 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. Brands like Chipotle, McDonalds and Starbucksarewalking a tightrope charge enough to protect the bottom line without alienating customers. This program provides emergency assistance for eligible restaurants, bars, and other qualifying businesses impacted by COVID-19. When typing in this field, a list of search results will appear and be automatically updated as you type. 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. Nova Inscrio. Until these funds were used up, they were available for eligible entrepreneurs, establishments, and corporations. A particular section of the legislation, Section 5003, laid the foundation for the Restaurant Revitalization Fund. What is the timeframe for using the RRF grant money? 11 a 13 de maio de 2022 - Lavras/MG. Just over 100,000 businesses received funding (40 percent of eligible applicants). This field is for validation purposes and should be left unchanged. Curso de Amostrador 2022. Restaurant owners plead for Congresss help after omicron surge. Washington has succumbed to dangerous groupthink on China, Google releases civil rights review, caving to years of pressure. For an optimal experience visit our site on another browser. 3807 (117th). 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. the aid could benefit? The wisdom of those measures is debatable; the pain from them is undeniable. 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. By June 2021, the funds $28.6 billion had been disbursed to 100,000 applicants in grants averaging $283,000. 3807, the Restaurant Revitalization Fund Replenishment Act of 2021. The House already has passed H.R. From independent operators to hospitality groups, most are disappointed and some are angry that there remains no federal aid to support struggling restaurants. 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. The Relief for Restaurants and Other Hard Hit Small Businesses Act of 2022 (H.R. Restaurant Revitalization Fund What's the impact of the Senate's failure to pass RRF? For instance, it prevented over 30,000 suspicious applications from receiving awards. 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. The CARES Act includes a provision for GAO to monitor federal efforts to respond to the COVID-19 pandemic. About 43 percent had 2019 revenue of $500,000 or less. 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. Among the 435 congressional districts, surely not one lacks businesses eligible for aid, especially from the Senate bill. The American Rescue Plan created the Restaurant Revitalization Fund. The restaurant industry reacts. 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. "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. Lawmakers. 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). Realizar Login. 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. The RRF is actually part of the American Rescue Plan Act (ARPA), which was established in March 2021. By June 2021, the fund's $28.6 billion had been disbursed to 100,000 applicants in grants averaging $283,000. Together with 52 State Associations, we are a network of professional organizations dedicated to serving every restaurant through advocacy, education, and food safety. All Applicants that do not fully expend award funds . 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. Consider the House-passed, $55 billion Restaurant Revitalization Fund Replenishment Act, which could be the No Faction Left Behind Act.. 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.. 3807), that included $42 billion to replenish the RRF, on April 7. That is a serious consideration. Most recipients (72 percent) reported they were owned by women, veterans, or members of socially and economically disadvantaged groups. 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. GAO reviewed SBA documentation, analyzed SBA data on the program's applicants and recipients, and interviewed SBA officials and representatives of industry associations. This recommendation will remain open until SBA provides evidence of conducting data analytics across RRF awards to detect potentially fraudulent recipients. By the time it closed in July 2021, the RRF. ), buses and ferries, etc. 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. 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. Oops. 1101 W. Mineral Ave. Ste. There had, however, been 278,304 applicants seeking $72 billion. On April 7, 2022, the House passed H.R. Weitere Informationen ber die Verwendung Ihrer personenbezogenen Daten finden Sie in unserer Datenschutzerklrung und unserer Cookie-Richtlinie. 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. 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