Are there any reporting requirements for RRF grant recipients? 1101 W. Mineral Ave. Ste. All rights reserved. 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. The RRF is actually part of the American Rescue Plan Act (ARPA), which was established in March 2021. "This should be the driving factor in bipartisan support for replenishing the RRF. Weitere Informationen ber die Verwendung Ihrer personenbezogenen Daten finden Sie in unserer Datenschutzerklrung und unserer Cookie-Richtlinie. This recommendation will remain open until SBA develops and implements a plan to respond to potentially fraudulent and ineligible awards in a prompt manner. Even the Restaurant Revitalization Fund, with its paltry $28.6 billion in initial funding, wasn't enough to meaningfully help most establishments. Rescuing restaurants (again) ought to give Congress indigestion Something went wrong. 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. Published May 24, 2022 Thai Phi Le Senior Managing Editor 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 . 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. House passes aid for restaurants, small businesses affected by Covid There are several strategic . ), buses and ferries, etc. 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. Last year, lawmakers created. What are eligible expenses and restrictions that RRF grant recipients should know about? The SBA has contacted recipients of the awards. Follow. In GovTrack.us, a database of bills in the U.S. Congress. It is axiomatic that the titles of congressional bills, like the titles of Marx Brothers movies (Duck Soup, Horse Feathers), are not scrupulously informative. Nearly 1 year ago, the Restaurant Revitalization Fund (RFF) stopped taking applications. The SBA is set to award an added $180 million in unspent funds allocated for the Restaurant Revitalization Fund (RRF) back in 2021. 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. SBA stated that the results of the analysis are scheduled to be completed by March 2023. It should take place Monday or Tuesday . About 43 percent had 2019 revenue of $500,000 or less. For instance, it prevented over 30,000 suspicious applications from receiving awards. 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. 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. And stop digging. JUNE 2022: In 2022, many RRF updates are in the works. SBA Restaurant Revitalization Fund:: The NRA wrote a letter to Congress on Monday urging policymakers to pass legislation that would refill the fund. The restaurant industry reacts. The wisdom of those measures is debatable; the pain from them is undeniable. House, Senate introduce bills adding $40B to RRF | Restaurant Dive 2023 Restaurant Accounting Services Inc. All Rights Reserved. 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. 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? 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. In January 2023, SBA stated that it follows standard operating procedures to refer suspicious activity to the OIG. So, in March 2021, seasonal compassion reinforced a political temptation for all seasons Congresss temptation to make life less unfair. The freshest news from the food world every day. This is not an infusion of funds into the RRF currently; in. This recommendation will remain open until SBA enhances its post-award reporting procedures to require recipients to report their operating status. 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. 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 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." Cardin's bill, S.4008, would provide $40 billion in additional funding for the Restaurant Revitalization Fund. Use of Funds Validation is now available for Restaurant Revitalization Fund awardees. Just over 100,000 businesses received funding (40 percent of eligible applicants). Would a grant recipient ever have to pay back any of the funds? Forty-three Senate Republicans, objecting to the fact that only a smidgen of the Senate bills cost would be offset by economies elsewhere, on May 19 prevented there being 60 votes to proceed with it. 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. In 2020 and 2021, restaurants, bars, and other food service businesses experienced substantial revenue loss and unemployment resulting from the COVID-19 pandemic. 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. 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. Do it again, but bigger. 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). Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023. 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. (Recommendation 7), Restaurant Revitalization Fund: Opportunities Exist to Improve Oversight. Priority is to be provided to previous RRF applicants that did not receive an award. "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. Ninety-six percent of RRFrecipients said the grant made it more likely that their business would survive. 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. 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. 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. 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. The Relief for Restaurants and Other Hard Hit Small Businesses Act of 2022 (H.R. 11 a 13 de maio de 2022 - Lavras/MG. The bill also would provide $13 billion for a Hard Hit Industries Award Program for small For an optimal experience visit our site on another browser. A requirement for annual reporting submissions applies to any applicant who doesnt fully expend RRF grant funds before December 31, 2021. "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. Press Releases | National Restaurant Association Congress is voting on a $42 billion Restaurant Revitalization Fund After this money was distributed, more than 177,000 applications were left in limbo at the SBA. If H.R. The CARES Act includes a provision for GAO to monitor federal efforts to respond to 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. Or 28,399 closures. 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. Realizar Login. Until these funds were used up, they were available for eligible entrepreneurs, establishments, and corporations. When typing in this field, a list of search results will appear and be automatically updated as you type. The President has encouraged most people to stop wearing masks in indoor spaces, something that was unthinkable a year ago. An estimated 90,000 restaurants have already closed their doors during the pandemic, and that number will likely continue to grow. 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. For restaurants, its all but certain that the devastation will continue. The first reports were due in December 2021, but 32 percent were overdue as of June 2022. But with Congress having adjourned for a two-week recess, the bill won't be considered anytime soon in the Senate. "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. Lawmakers ask SBA for disbursement plan for $180M RRF leftovers 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. 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. In January 2023, SBA stated that it was reviewing 10% of RRF awards to confirm eligibility and use of funds compliance. Publicly Released: Jul 14, 2022. Please enter a valid email and try again. Oops. GAO makes seven recommendations to SBA, including to assess pre-award controls and address deficiencies, strengthen post-award reporting, take additional steps to identify fraudulent or ineligible awards, and develop and implement a plan to address potentially fraudulent award recipients in a timely manner. "We must continue to look forward because the enormous challenges of the industry will continue beyond today. According to the SBA, the grants are being released to operators in the order their applications were received. Recipients cannot claim other expenses paid with RRF grant money as nonpayroll costs for purposes of PPP forgiveness. Open

Actions to satisfy the intent of the recommendation have not been taken or are being planned.