H.R. 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 SBA has contacted recipients of the awards. Both political parties agreed that the RRF should be replenished but couldn't reach a consensus on how to pay for it. 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. In 2022, many RRF updates are in the works. 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. 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. Weitere Informationen ber die Verwendung Ihrer personenbezogenen Daten finden Sie in unserer Datenschutzerklrung und unserer Cookie-Richtlinie. Priority is to be provided to previous RRF applicants that did not receive an award. Published May 24, 2022 Thai Phi Le Senior Managing Editor 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. The restaurant industry reacts. 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.". The recipient has until March 11th of 2023 to use the RRF grant unless the business has permanently closed. GAO maintains that all of the recommendations are valid, as discussed in this report. Joanna Fantozzi | Apr 06, 2022. (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. If the business permanently closes, the covered period will end when the business permanently closes; or, on March 11, 2023 whichever occurs sooner. Just over 100,000 businesses received funding (40 percent of eligible applicants). However, in May, the Senate didnt pass the proposed increase, which was viewed by many as a setback. Among its objectives, this report examines recipient characteristics, SBA's internal controls and fraud risk management practices, and SBA's efforts to monitor recipients. Rebecca Shabad is a politics reporter for NBC News based in Washington. Cardin's bill, S.4008, would provide $40 billion in additional funding for the Restaurant Revitalization Fund. Restaurant Revitalization Fund What's the impact of the Senate's failure to pass RRF? 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. 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. Painel do Inscrito. Oops. SBA stated that the results of the analysis are scheduled to be completed by March 2023. 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 March 2021, Congress appropriated $28.6 billion to SBA for a Restaurant Revitalization Fund to assist the industry. Lawmakers approved the measure in a 223-203 vote, with only about a handful of Republicans backing it. And by the third quarter of 2021, Britschgi writes, the number of restaurants had surpassed pre-pandemic levels.. SBA agreed or partially agreed with two recommendations. ET, 5 store-level changes driving the Starbucks union, How 6 restaurant giants are hiking menu prices, Starbucks faces corporate employee revolt, Wendys offers franchisees reduced royalty rate, slashes fees on new restaurants, Bonchon to double US presence within 5 years, NRA: One-third of operators predict ghost kitchens will decline, How Retailers Can Embrace New Collaborations with Brands, Reimagining the dine-in experience with technology, How Restaurants Can Turbocharge Loyalty Programs with Payment Data, Starbucks fired a union organizer. Four mistakes youre making with home internet. Among the 435 congressional districts, surely not one lacks businesses eligible for aid, especially from the Senate bill. Payroll costs claimed as ERTC eligible wages, Forgivable payroll expenses on the PPP forgiveness application, Nonpayroll expenses claimed on the PPP Forgiveness application. 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.
Actions to satisfy the intent of the recommendation have not been taken or are being planned.
, Executive Candidate Assessment and Development Program, Business Regulation and Consumer Protection, The Associate Administrator for the Office of Capital Access should conduct and document an assessment of the RRF pre-award controls and address or mitigate deficiencies. (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. Copyright 2023 Sawyer Direct LLC | All Rights Reserved. The SBA will work with the Department of Justice to disburse the money, according to the NRA. The SBA closed the program and stopped accepting applications on July 2nd, 2021. Realizar Login. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023. If H.R. 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. There comes a point where the right policy is: Stop smoothing. LOOK What Happened When This Restaurant Posted a Politically Incorrect Sign. 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 . Hence the Replenishment Act. The median award was about $126,000. This government aide says it knows what voters want. The Relief for Restaurants and Other Hard Hit Small Businesses Act of 2022 (H.R. In the wake of the COVID-19 pandemic, restrictions on gathering and other crowd control measures had a huge impact on restaurant owners. SBA emphasized pre-award controls to detect fraudulent or ineligible applications but has not assessed their effectiveness. If the recipient fully expends their funds prior to December 31, 2021, they will be asked to certify that proceeds have been used on eligible expenses. All Applicants that do not fully expend award funds . This recommendation will remain open until SBA (1) assesses how the design of RRF pre-award controls may have adversely affected applicants from U.S. territories, and (2) documents steps to mitigate this issue for future programs. The unions proposals often focus on specific changes to systems workers interact with all day, every day, including equipment and mobile ordering. 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. 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. 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. In the initial shutdowns, more than eight million industry employees were laid off or furloughed. Taking additional steps to identify and address potentially fraudulent awards in a timely manner could help SBA recover funds. On April 7, 2022, the House passed H.R. But what about those other small businesses (gyms, minor league baseball, etc.) 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. The first reports were due in December 2021, but 32 percent were overdue as of June 2022. Brands like Chipotle, McDonalds and Starbucksarewalking a tightrope charge enough to protect the bottom line without alienating customers. (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. They have until March 2023 to spend the money. New York City got him rehired, KFC is getting rid of 5 menu items but one fan favorite is finally coming back, Wagamamas Food Fight With Hedge Fund Is Delicious, Smart Mobility Data: The Essential Guide to US Retail Location Selection, What Diners Want: 5 Top Trends in the Restaurant Industry, NRA forecasts 2023 job growth, not major recession, Starbucks board opposes labor review backed by NYC pension funds, CA bill would establish joint franchisor-franchisee liability for QSRs, The Relief for Restaurants and Other Hard Hit Small Businesses Act of 2022 (H.R. The unfortunate outcome however was that the demand for the funds was far greater than the supply. 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." 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. 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). 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.