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. 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 . Past-due expenses qualify as RRF expenses. SBA emphasized pre-award controls to detect fraudulent or ineligible applications but has not assessed their effectiveness. After this money was distributed, more than 177,000 applications were left in limbo at the SBA. In March 2021, Congress appropriated $28.6 billion to the Small Business Administration to help the food service industry weather the COVID-19 pandemic. A particular section of the legislation, Section 5003, laid the foundation for the Restaurant Revitalization Fund. The SBA is set to award an added $180 million in unspent funds allocated for the Restaurant Revitalization Fund (RRF) back in 2021. Among its objectives, this report examines recipient characteristics, SBA's internal controls and fraud risk management practices, and SBA's efforts to monitor recipients. 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." 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. SBA stated that the results of the analysis are scheduled to be completed by March 2023. The bill would provide $42 billion to replenish the RRF. UPDATE: April 6, 2022:Sen. Benjamin Cardin (D-MD) introduced a bill similar to the one before the House Tuesday night. The President has encouraged most people to stop wearing masks in indoor spaces, something that was unthinkable a year ago. Joanna Fantozzi | Apr 06, 2022. Together with 52 State Associations, we are a network of professional organizations dedicated to serving every restaurant through advocacy, education, and food safety. That is a serious consideration. What are eligible expenses and restrictions that RRF grant recipients should know about? Its abundantly clear that the Biden administration considers the pandemic to be basically over. When typing in this field, a list of search results will appear and be automatically updated as you type. 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. ), buses and ferries, etc. By June 2021, the funds $28.6 billion had been disbursed to 100,000 applicants in grants averaging $283,000. Use of Funds Validation is now available for Restaurant Revitalization Fund awardees. 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. Bei der Nutzung unserer Websites und Apps verwenden wir, unsere Websites und Apps fr Sie bereitzustellen, Nutzer zu authentifizieren, Sicherheitsmanahmen anzuwenden und Spam und Missbrauch zu verhindern, und, Ihre Nutzung unserer Websites und Apps zu messen, personalisierte Werbung und Inhalte auf der Grundlage von Interessenprofilen anzuzeigen, die Effektivitt von personalisierten Anzeigen und Inhalten zu messen, sowie, unsere Produkte und Dienstleistungen zu entwickeln und zu verbessern. Lawmakers approved the measure in a 223-203 vote, with only about a handful of Republicans backing it. In the initial shutdowns, more than eight million industry employees were laid off or furloughed. Optimal accounting solutions for small, medium, multi-unit concept, franchise, and enterprise restaurant operators. And stop digging. The bill also would provide $13 billion for a Hard Hit Industries Award Program for small For more information, visitRestaurant.org and find us on Twitter@WeRRestaurants, Cision Distribution 888-776-0942 Supply chain shortages are still a massive problem for restaurants, and the cost of doing business grows by the day. So, in March 2021, seasonal compassion reinforced a political temptation for all seasons Congresss temptation to make life less unfair. 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. Oops. 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. Payroll costs claimed as ERTC eligible wages, Forgivable payroll expenses on the PPP forgiveness application, Nonpayroll expenses claimed on the PPP Forgiveness application. "This should be the driving factor in bipartisan support for replenishing the RRF. 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. Painel do Inscrito. Less than 10 days after the SBA launched the RRF Portal, the applications submitted equated to more than twice the amount of funds available. The NRA wrote a letter to Congress on Monday urging policymakers to pass legislation that would refill the fund. Rebecca Shabad is a politics reporter for NBC News based in Washington. 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 Recipients cannot claim wages paid with RRF grant money as wages for purposes of the ERTC or PPP forgiveness. From the recruitment of employees to the constantly rising costs for food, running a restaurant right now is a daily struggle. Initially, nearly $29 billion was appropriated to award eligible restaurants and other establishments to help their businesses in the wake of the pandemic. 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 hear from restaurants and bars owners each day who applied for a grant and never received one. 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.". Congress eventually set aside $28.6 billion dollars for the RRF in the American Rescue Plan Act. According to the SBA, the grants are being released to operators in the order their applications were received. The RRF is actually part of the American Rescue Plan Act (ARPA), which was established in March 2021. 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. Senha. 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. (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. 3807), which would refill the Restaurant Revitalization Fund with $42 billion,was reintroduced in. 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.. They have until March 2023 to spend the money. 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.). (Recommendation 7), Restaurant Revitalization Fund: Opportunities Exist to Improve Oversight. 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. National Restaurant Association Nov 23, 2022, 16:51 ET WASHINGTON, Nov. 23, 2022 /PRNewswire/ -- Today, the Small Business Administration (SBA) announced the release of $83 million dollars in. 3807), that included $42 billion to replenish the RRF, on April 7. For restaurants, its all but certain that the devastation will continue. From independent operators to hospitality groups, most are disappointed and some are angry that there remains no federal aid to support struggling restaurants. 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. 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. Stay up to date on the news from Silicon Valley, and how to take back control of your data and devices. 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. Even the Restaurant Revitalization Fund, with its paltry $28.6 billion in initial funding, wasnt enough to meaningfully help most establishments. SBA stopped accepting applications in July 2021 with the program oversubscribed and almost all its funds disbursed. 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. Esqueci minha senha. 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. Christian Britschgi is dubious. This recommendation will remain open until SBA enhances its post-award reporting procedures to require recipients to report their operating status. Well, then, what about that will-o-the-wisp, fairness? 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. Restaurant owners plead for Congresss help after omicron surge. 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. This government aide says it knows what voters want. Follow. The National Restaurant Association has been requesting these funds be released, and Executive Vice President of Public Affairs Sean Kennedy released the following statement in response: "The SBA's action represents the final chapter of our nearly three-year effort to secure dedicated federal pandemic relief dollars for local restaurants. This plan should include coordinating with the OIG to align efforts to address fraud. 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. from 8 AM - 9 PM ET. 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. In 2020, independent locations declined by 8 percent, according to The NPD Group. 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. 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. In January 2023, SBA stated that it follows standard operating procedures to refer suspicious activity to the OIG. Expect to see many more restaurant closures in the coming months. The $55 billion bill would largely replenish a grant program created by the American Rescue Plan that provides assistance to restaurants. Would a grant recipient ever have to pay back any of the funds? The SBA closed the program and stopped accepting applications on July 2nd, 2021. The House passed the Relief for Restaurants and other Hard Hit Small Businesses Act of 2022 (H.R. The bill would also put $13 billion toward other businesses impacted by the COVID-19 crisis. (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. 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? 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. 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. Apr 7, 2022. Reps. Brian Fitzpatrick (R, PA) and Earl Blumenauer (D, OR), and Sens. 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. Lawmakers. Hence the Replenishment Act. And SBA has not proactively used data analytics or information from enforcement entities to identify potentially fraudulent award recipients. What is the timeframe for using the RRF grant money? 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. 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. There are several strategic . Just over 100,000 businesses received funding (40 percent of eligible applicants). By June 2021, the fund's $28.6 billion had been disbursed to 100,000 applicants in grants averaging $283,000. 2023 Restaurant Accounting Services Inc. All Rights Reserved. It is axiomatic that the titles of congressional bills, like the titles of Marx Brothers movies (Duck Soup, Horse Feathers), are not scrupulously informative. In addition to restaurants and bars, eligible businesses include food trucks, bakeries, wineries or breweries and inns. The restaurant industry was the hardest hit by the pandemic. Number of Restaurant Revitalization Fund Applications by Eligibility and Funding Status. Access from your Country was disabled by the administrator. The Small Business Administration (SBA) began accepting applications and awarding funds in May 2021. 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. Klicken Sie auf Alle ablehnen, wenn Sie nicht mchten, dass wir und unsere Partner Cookies und personenbezogene Daten fr diese zustzlichen Zwecke verwenden. An estimated 90,000 restaurants have already closed their doors during the pandemic, and that number will likely continue to grow. The National Restaurant Association is asking Congress to replenish the Restaurant Revitalization Fund as the Covid omicron variant hits operators' businesses. 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. A similar attempt to refill the RRF was left out of the omnibus spending bill earlier this year. The House already has passed H.R. 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 House is expected to vote on the bill,which has a mix of 234 Democratic and Republican sponsors, this week. ABC News reported on the story, where Anon explained how he was fed up with how sensitive people have gotten . JUNE 2022: In 2022, many RRF updates are in the works. The wisdom of those measures is debatable; the pain from them is undeniable. 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). SBA agreed or partially agreed with two recommendations. 3807, the Restaurant Revitalization Fund Replenishment Act of 2021. | 2 p.m. Dont do that. Nevertheless, the Replenishment bill barely passed the House 223 to 203 in April, with only six Republicans favoring it and only four Democrats opposed. Sie knnen Ihre Einstellungen jederzeit ndern, indem Sie auf unseren Websites und Apps auf den Link Datenschutz-Dashboard klicken. 3807 (117th). Restaurant owners have taken on substantial debt and tapped into their own savings accounts, just in an effort to keep the doors open. 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. Most applicants got to the trough too late, when it was empty. SBA took steps to detect fraudulent or ineligible applications. According to the letter, while the rest of the economy continues to quickly add jobs, restaurant industry job growth in . the aid could benefit? The freshest news from the food world every day. "We must continue to look forward because the enormous challenges of the industry will continue beyond today. Copyright 2023 Sawyer Direct LLC | All Rights Reserved. The SBA is set to award an added $180 million in unspent funds allocated for the Restaurant Revitalization Fund (RRF) back in 2021. 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 recipient has until March 11th of 2023 to use the RRF grant unless the business has permanently closed. What to do? 1101 W. Mineral Ave. Ste. 3807), which would refill the Restaurant Revitalization Fund with $42 billion, was reintroduced in a Rules Committee meeting in the House of Representatives on Tuesday. 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. Operators receiving funds should receive notification today and SBA will begin transmitting the grants next week. If H.R. 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. In 2022, many RRF updates are in the works. Most recipients (72 percent) reported they were owned by women, veterans, or members of socially and economically disadvantaged groups. Senha. The first reports were due in December 2021, but 32 percent were overdue as of June 2022. In the wake of the COVID-19 pandemic, restrictions on gathering and other crowd control measures had a huge impact on restaurant owners. 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 field is for validation purposes and should be left unchanged. Restaurant Revitalization Fund Award Disbursements, May 3July 1, 2021.
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