Assessing controls and addressing deficiencies would help SBA better ensure program integrity. In March 2021, Congress appropriated $28.6 billion to SBA for a Restaurant Revitalization Fund to assist the industry. Initially, nearly $29 billion was appropriated to award eligible restaurants and other establishments to help their businesses in the wake of the pandemic. What are eligible expenses and restrictions that RRF grant recipients should know about? 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 is not an infusion of funds into the RRF currently; in. CPF, documento de identificao ou Cdigo da Conta. Many hoped that would mean more money into the RRF, which wasnt able to distribute the vast majority of monies requested by restaurants due to lawsuits over a rule intended to help that aid reach minority-owned businesses first. Wenn Sie Ihre Auswahl anpassen mchten, klicken Sie auf Datenschutzeinstellungen verwalten. 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. 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. H.R.3807 - 117th Congress (2021-2022): Restaurant Revitalization Fund Most applicants got to the trough too late, when it was empty. 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). This recommendation will remain open until SBA provides evidence of conducting data analytics across RRF awards to detect potentially fraudulent recipients. The Association was first to lay out the plan for a restaurant industry recovery fund to Congress in April 2020. 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. In addition to restaurants and bars, eligible businesses include food trucks, bakeries, wineries or breweries and inns. 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. 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. Updates to the Restaurant Revitalization Fund - ARF Financial Taking additional steps to identify and address potentially fraudulent awards in a timely manner could help SBA recover funds. (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. 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. LISTEN TO THE QUICK UPDATE PODCAST BELOW! This plan should include coordinating with the OIG to align efforts to address fraud. Reps. Brian Fitzpatrick (R, PA) and Earl Blumenauer (D, OR), and Sens. All rights reserved. 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 freshest news from the food world every 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. 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 House already has passed H.R. This government aide says it knows what voters want. Get the free daily newsletter read by industry experts. SBA releases $83M in additional RRF aid It is axiomatic that the titles of congressional bills, like the titles of Marx Brothers movies (Duck Soup, Horse Feathers), are not scrupulously informative. Copyright 2023 Sawyer Direct LLC | All Rights Reserved. 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 1101 W. Mineral Ave. Ste. Realizar Login. The RRF is actually part of the American Rescue Plan Act (ARPA), which was established in March 2021. Cardin's bill, S.4008, would provide $40 billion in additional funding for the Restaurant Revitalization Fund. The Small Business Administration (SBA) began accepting applications and awarding funds in May 2021. In the wake of the COVID-19 pandemic, restrictions on gathering and other crowd control measures had a huge impact on restaurant owners. The bill would also put $13 billion toward other businesses impacted by the COVID-19 crisis. 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. All Applicants that do not fully expend award funds . A similar attempt to refill the RRF was left out of the omnibus spending bill earlier this year. Press Releases | National Restaurant Association 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. (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. 3807 (117th). That is a serious consideration. For an optimal experience visit our site on another browser. As a result, the U.S. Congress introduced legislation called the Restaurant Revitalization Fund (RRF) to help restaurants get back on their feet. If H.R. The first reports were due in December 2021, but 32 percent were overdue as of June 2022. What's the impact of the Senate's failure to pass RRF? The restaurant Number of Restaurant Revitalization Fund Applications by Eligibility and Funding Status. (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. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023. 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. The Small Business Administration (SBA) began accepting applications and awarding funds in May 2021. The $55 billion bill would largely replenish a grant program created by the American Rescue Plan that provides assistance to restaurants. Access from your Country was disabled by the administrator. 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. Among the 435 congressional districts, surely not one lacks businesses eligible for aid, especially from the Senate bill. Press Releases | National Restaurant Association If the business permanently closes, the covered period will end when the business permanently closes; or, on March 11, 2023 whichever occurs sooner. Supply chain shortages are still a massive problem for restaurants, and the cost of doing business grows by the day. This program provides emergency assistance for eligible restaurants, bars, and other qualifying businesses impacted by COVID-19. 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. 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. Environmental, Social and Governance (ESG), HVAC (Heating, Ventilation and Air-Conditioning), Machine Tools, Metalworking and Metallurgy, Aboriginal, First Nations & Native American, A New Normal Takes Hold; Restaurants Focused on Paths to Continued Growth in 2023, DIRECTV for BUSINESS and National Restaurant Association Team-Up to Enhance the Restaurant Experience and Advance Restaurant Workers. 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. Lawmakers. In 2020, independent locations declined by 8 percent, according to The NPD Group. "We hear from restaurants and bars owners each day who applied for a grant and never received one. This will remain until they fully expend the grant funding or the covered period expires. | 2 p.m. Restaurant Industry News and Resources in Georgia. 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.). 11 a 13 de maio de 2022 - Lavras/MG. Esqueci minha senha. 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. 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. Hence the Replenishment Act. But with Congress having adjourned for a two-week recess, the bill won't be considered anytime soon in the Senate. The Restaurant Revitalization Fund was established in March 2021 to support eligible entities suffering revenue losses from the COVID-19 pandemic. (Recommendation 7), Restaurant Revitalization Fund: Opportunities Exist to Improve Oversight. Past-due expenses qualify as RRF expenses. (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. And SBA has not proactively used data analytics or information from enforcement entities to identify potentially fraudulent award recipients. Lawmakers approved the measure in a 223-203 vote, with only about a handful of Republicans backing it. The Latest Restaurant Revitalization Fund (RRF) Updates Its an AI bot. All of the funds had to be used for valid cases and claims up to March 11, 2023. Weitere Informationen ber die Verwendung Ihrer personenbezogenen Daten finden Sie in unserer Datenschutzerklrung und unserer Cookie-Richtlinie. 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. From independent operators to hospitality groups, most are disappointed and some are angry that there remains no federal aid to support struggling restaurants. So, in March 2021, seasonal compassion reinforced a political temptation for all seasons Congresss temptation to make life less unfair. The SBA is set to award an added $180 million in unspent funds allocated for the Restaurant Revitalization Fund (RRF) back in 2021. An estimated 90,000 restaurants have already closed their doors during the pandemic, and that number will likely continue to grow. The bill also would provide $13 billion for a Hard Hit Industries Award Program for small Published May 24, 2022 Thai Phi Le Senior Managing Editor Restaurant Revitalization Fund Award Disbursements, May 3July 1, 2021. RASI will only use your information to contact you about our products and services. 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. 3807, the Restaurant Revitalization Fund Replenishment Act of 2021. 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. Please enter a valid email and try again. 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. Restaurant Revitalization Fund However, for expensesses incurred on February 15, 2020 or after, be careful not to use the following: So long as funds are utilized for eligible applications no later than March 11, 2023, there is no requirement for recipients to repay the funding. 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. "This should be the driving factor in bipartisan support for replenishing the RRF. In January 2023, SBA stated that it was reviewing 10% of RRF awards to confirm eligibility and use of funds compliance. But, then, weapons systems have been purchased because suppliers of components were spread across the country like tapenade on toast. Even the Restaurant Revitalization Fund, with its paltry $28.6 billion in initial funding, wasnt enough to meaningfully help most establishments. Roger Wicker (R-MS) and Kyrsten Sinema (D-AZ), signed the letter . Do it again, but bigger. The CARES Act includes a provision for GAO to monitor federal efforts to respond to the COVID-19 pandemic. The unions proposals often focus on specific changes to systems workers interact with all day, every day, including equipment and mobile ordering. Among its objectives, this report examines recipient characteristics, SBA's internal controls and fraud risk management practices, and SBA's efforts to monitor recipients. 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. 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.. A particular section of the legislation, Section 5003, laid the foundation for the Restaurant Revitalization Fund. The Restaurant Revitalization Fund was established in March 2021 to support eligible entities suffering revenue losses from the COVID-19 pandemic. They have until March 2023 to spend the money. About 43 percent had 2019 revenue of $500,000 or less. 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. 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. Ninety-six percent of RRFrecipients said the grant made it more likely that their business would survive. There had, however, been 278,304 applicants seeking $72 billion. The age of the Silicon Valley moonshot is over. Painel do Inscrito | Conference Software WASHINGTON, Nov. 23, 2022 /PRNewswire/ -- Today, the Small Business Administration (SBA) announced the release of $83 million dollars in unobligated Restaurant Revitalization Fund (RRF) grants to 169 operators with pending applications. SBA to disburse $180M in remaining RRF funds | Restaurant Dive In January 2023, SBA stated that it follows standard operating procedures to refer suspicious activity to the OIG. 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. ABC News reported on the story, where Anon explained how he was fed up with how sensitive people have gotten . Together with 52 State Associations, we are a network of professional organizations dedicated to serving every restaurant through advocacy, education, and food safety. 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. 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 Publicly Released: Jul 14, 2022. 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. Restaurant owners plead for Congresss help after omicron surge. The restaurant industry was the hardest hit by the pandemic. After this money was distributed, more than 177,000 applications were left in limbo at the SBA. Congress eventually set aside $28.6 billion dollars for the RRF in the American Rescue Plan Act. SBA took steps to detect fraudulent or ineligible applications. For more information, visitRestaurant.org and find us on Twitter@WeRRestaurants, Cision Distribution 888-776-0942 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). 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. For instance, it prevented over 30,000 suspicious applications from receiving awards. Less than 10 days after the SBA launched the RRF Portal, the applications submitted equated to more than twice the amount of funds available. Stay up to date on the news from Silicon Valley, and how to take back control of your data and devices. Recipients cannot claim wages paid with RRF grant money as wages for purposes of the ERTC or PPP forgiveness. 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. 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. 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). Restaurant Revitalization Fund What's the impact of the Senate's failure to pass 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. It should take place Monday or Tuesday . Rescuing restaurants (again) ought to give Congress indigestion Dont do that. Restaurant owners have taken on substantial debt and tapped into their own savings accounts, just in an effort to keep the doors open. SBA stopped accepting applications in July 2021 with the program oversubscribed and almost all its funds disbursed. National Restaurant Association asks Congress for aid amid omicron Curso de Amostrador 2022. SBA requires recipients to report annually on fund use, but has taken limited steps to enforce reporting requirements and identify fraudulent or ineligible awards. Sie knnen Ihre Einstellungen jederzeit ndern, indem Sie auf unseren Websites und Apps auf den Link Datenschutz-Dashboard klicken. In January 2023, SBA stated that it would conduct a review of RRF awards and use the results to inform the effectiveness of pre-award controls. Use of Funds Validation is now available for Restaurant Revitalization Fund awardees. Painel do Inscrito. SBA agreed or partially agreed with two recommendations. House passes aid for restaurants, small businesses affected by Covid The bill would provide $42 billion to replenish the RRF. 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. Recipients cannot claim other expenses paid with RRF grant money as nonpayroll costs for purposes of PPP forgiveness. 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. 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! On April 7, 2022, the House passed H.R. The American Rescue Plan created the Restaurant Revitalization Fund. Congress is voting on a $42 billion Restaurant Revitalization Fund 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. Well, then, what about that will-o-the-wisp, fairness? What is the timeframe for using the RRF grant money? Restaurant Revitalization Fund (RRF) Updates - August 2022 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. from 8 AM - 9 PM ET. SBA emphasized pre-award controls to detect fraudulent or ineligible applications but has not assessed their effectiveness. By June 2021, the funds $28.6 billion had been disbursed to 100,000 applicants in grants averaging $283,000. And it underscores the inevitable inequities that accompany large-scale government interventions in the economy. The House passed the Relief for Restaurants and other Hard Hit Small Businesses Act of 2022 (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. According to the American Rescue Plan Act of 2021 (ARPA), the amounts received from the SBA in the form of a Restaurant Revitalization Grant shall not be included in gross income (non-taxable); additionally, the expenses incurred are deductible. While SBA prevented over 30,000 suspicious applications from receiving awards, GAO identified systemic control weaknesses. Consider the House-passed, $55 billion Restaurant Revitalization Fund Replenishment Act, which could be the No Faction Left Behind Act.. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023. The restaurant industry reacts. Last year, lawmakers created. Keep reading to learn more about RRF grant updates, eligibility, RRF forgiveness, and more. H.R. 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. And stop digging. For restaurants, its all but certain that the devastation will continue. 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. National Restaurant Association Statement on the Release of $83 Million 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?

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