We recommended that SBA do so. the aid could benefit? But, then, weapons systems have been purchased because suppliers of components were spread across the country like tapenade on toast. 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. From independent operators to hospitality groups, most are disappointed and some are angry that there remains no federal aid to support struggling restaurants. (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. 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 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.). 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 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. The President has encouraged most people to stop wearing masks in indoor spaces, something that was unthinkable a year ago. Published May 24, 2022 Thai Phi Le Senior Managing Editor "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. The bill would provide $42 billion to replenish the RRF. The unfortunate outcome however was that the demand for the funds was far greater than the supply. "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. Among its objectives, this report examines recipient characteristics, SBA's internal controls and fraud risk management practices, and SBA's efforts to monitor recipients. This program provides emergency assistance for eligible restaurants, bars, and other qualifying businesses impacted by COVID-19. 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. 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. 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. The NRA wrote a letter to Congress on Monday urging policymakers to pass legislation that would refill the fund. 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. Stay up to date on the news from Silicon Valley, and how to take back control of your data and devices. Payroll costs claimed as ERTC eligible wages, Forgivable payroll expenses on the PPP forgiveness application, Nonpayroll expenses claimed on the PPP Forgiveness application. 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. With so many questions surrounding the RRF, we created this resource and guide to provide answers. Priority is to be provided to previous RRF applicants that did not receive an award. Use of Funds Validation is now available for Restaurant Revitalization Fund awardees. In 2022, many RRF updates are in the works. 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. 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. Follow. Weitere Informationen ber die Verwendung Ihrer personenbezogenen Daten finden Sie in unserer Datenschutzerklrung und unserer Cookie-Richtlinie. Both political parties agreed that the RRF should be replenished but couldn't reach a consensus on how to pay for it. Supply chain shortages are still a massive problem for restaurants, and the cost of doing business grows by the day. Operators receiving funds should receive notification today and SBA will begin transmitting the grants next week. Last year, lawmakers created. But with Congress having adjourned for a two-week recess, the bill won't be considered anytime soon in the Senate. 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. SBA disagreed with five recommendations, including to assess pre-award controls and implement a plan to address fraudulent or ineligible awards. The age of the Silicon Valley moonshot is over. According to the SBA, the grants are being released to operators in the order their applications were received. Atendimento ao inscrito. Among the 435 congressional districts, surely not one lacks businesses eligible for aid, especially from the Senate bill. Hence the Replenishment Act. The American Rescue Plan created the Restaurant Revitalization Fund. What to do? 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. Past-due expenses qualify as RRF expenses. 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. The first reports were due in December 2021, but 32 percent were overdue as of June 2022. A particular section of the legislation, Section 5003, laid the foundation for the Restaurant Revitalization Fund. Expect to see many more restaurant closures in the coming months. By the time it closed in July 2021, the RRF. Together with 52 State Associations, we are a network of professional organizations dedicated to serving every restaurant through advocacy, education, and food safety. Dont do that. It should take place Monday or Tuesday . 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. The freshest news from the food world every day. In 2020, independent locations declined by 8 percent, according to The NPD Group. 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. 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. 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. In the initial shutdowns, more than eight million industry employees were laid off or furloughed. Restaurant Industry News and Resources in Georgia. 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. 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 SBA closed the program and stopped accepting applications on July 2nd, 2021. (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. But it flagged 4,000 award recipients for suspected fraud and isn't taking timely action to address them. Klicken Sie auf Alle ablehnen, wenn Sie nicht mchten, dass wir und unsere Partner Cookies und personenbezogene Daten fr diese zustzlichen Zwecke verwenden. In January 2023, SBA stated that it follows standard operating procedures to refer suspicious activity to the OIG. For more information about the SBA, visit sba.gov. The SBA is set to award an added $180 million in unspent funds allocated for the Restaurant Revitalization Fund (RRF) back in 2021. Lawmakers. In the wake of the COVID-19 pandemic, restrictions on gathering and other crowd control measures had a huge impact on restaurant owners. 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 . "We must continue to look forward because the enormous challenges of the industry will continue beyond today. 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. Restaurant Revitalization Fund What's the impact of the Senate's failure to pass RRF? Realizar Login. 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. 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. 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. Cardin's bill, S.4008, would provide $40 billion in additional funding for the Restaurant Revitalization Fund. This field is for validation purposes and should be left unchanged. 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. ), buses and ferries, etc. Initially, nearly $29 billion was appropriated to award eligible restaurants and other establishments to help their businesses in the wake of the pandemic. The Small Business Administration (SBA) began accepting applications and awarding funds in May 2021. 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. 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. A requirement for annual reporting submissions applies to any applicant who doesnt fully expend RRF grant funds before December 31, 2021. So, in March 2021, seasonal compassion reinforced a political temptation for all seasons Congresss temptation to make life less unfair. SBA agreed or partially agreed with two recommendations. By June 2021, the funds $28.6 billion had been disbursed to 100,000 applicants in grants averaging $283,000. Restaurant Revitalization Fund (RRF) Updates. After this money was distributed, more than 177,000 applications were left in limbo at the SBA. More than 90,000 restaurants closed permanently or long-term because of the pandemic. The restaurant industry was the hardest hit by the 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. 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.