In GovTrack.us, a database of bills in the U.S. Congress. And SBA has not proactively used data analytics or information from enforcement entities to identify potentially fraudulent award recipients. Payroll costs claimed as ERTC eligible wages, Forgivable payroll expenses on the PPP forgiveness application, Nonpayroll expenses claimed on the PPP Forgiveness application. There had, however, been 278,304 applicants seeking $72 billion. 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 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. This plan should include coordinating with the OIG. 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? 3807 (117th). So, however, is this: Once government begins to pursue the chimera of ever-more-perfect fairness, it finds actually, it incites more and more factions claiming that justice demands their inclusion in the governments ever-expanding plans for smoothing lifes rough surfaces. 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. And stop digging. Even the Restaurant Revitalization Fund, with its paltry $28.6 billion in initial funding, wasnt enough to meaningfully help most establishments. "This should be the driving factor in bipartisan support for replenishing the RRF. Initially, nearly $29 billion was appropriated to award eligible restaurants and other establishments to help their businesses in the wake of the pandemic. The U.S. House of Representatives voted yes on a bill Thursday that would provide $42 billion in relief to foodservice businesses that originally applied for the . 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. Do it again, but bigger. Oops. 3807), which would refill the Restaurant Revitalization Fund with $42 billion,was reintroduced in. Washington has succumbed to dangerous groupthink on China, Google releases civil rights review, caving to years of pressure. The Restaurant Revitalization Fund was established in March 2021 to support eligible entities suffering revenue losses from the COVID-19 pandemic. 200Littleton, Colorado 80120. Copyright 1999 2023 GoDaddy Operating Company, LLC. Copyright 2023 Sawyer Direct LLC | All Rights Reserved. Wenn Sie Ihre Auswahl anpassen mchten, klicken Sie auf Datenschutzeinstellungen verwalten. They said at least 90,000 restaurants and bars have closed since the pandemic started more than two years ago. 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. Cardin's bill, S.4008, would provide $40 billion in additional funding for the Restaurant Revitalization Fund. 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. 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. LISTEN TO THE QUICK UPDATE PODCAST BELOW! All Applicants that do not fully expend award funds . This will remain until they fully expend the grant funding or the covered period expires. This government aide says it knows what voters want. This plan should include coordinating with the OIG to align efforts to address fraud. 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. Even the Restaurant Revitalization Fund, with its paltry $28.6 billion in initial funding, wasn't enough to meaningfully help most establishments. The House passed the Relief for Restaurants and other Hard Hit Small Businesses Act of 2022 (H.R. The SBA is set to award an added $180 million in unspent funds allocated for the Restaurant Revitalization Fund (RRF) back in 2021. About 43 percent had 2019 revenue of $500,000 or less. SBA agreed or partially agreed with two recommendations. GAO maintains that all of the recommendations are valid, as discussed in this report. Including $85 million for certain border region businesses, such as those in (herewith a geography lesson) the Northwest Angle, which CQ Roll Call explains is a region of Minnesota that is separated from the rest of the state by the Lake of the Woods but shares land borders with Canada, whose strict pandemic protocols injured Americans living in the Angle. As such, well continue to see the consequences of that failure in the coming months. IE 11 is not supported. 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. That is a serious consideration. This recommendation will remain open until SBA develops and implements policies and procedures for addressing RRF award recipients who do not meet annual reporting requirements. 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. With so many questions surrounding the RRF, we created this resource and guide to provide answers. Joanna Fantozzi | Apr 06, 2022. 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. 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. But it flagged 4,000 award recipients for suspected fraud and isn't taking timely action to address them. The SBA has contacted recipients of the awards. 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. Weitere Informationen ber die Verwendung Ihrer personenbezogenen Daten finden Sie in unserer Datenschutzerklrung und unserer Cookie-Richtlinie. The recipient has until March 11th of 2023 to use the RRF grant unless the business has permanently closed. 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 . (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. Atendimento ao inscrito. Restaurant owners plead for Congresss help after omicron surge. 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. 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. 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 $55 billion bill would largely replenish a grant program created by the American Rescue Plan that provides assistance to restaurants. No later than December 31, 2021, all recipients are required to report to the SBA how much of their RRF grant has been used against each eligible use category. 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. An estimated 90,000 restaurants have already closed their doors during the pandemic, and that number will likely continue to grow. ABC News reported on the story, where Anon explained how he was fed up with how sensitive people have gotten . Recipients cannot claim wages paid with RRF grant money as wages for purposes of the ERTC or PPP forgiveness. "We hear from restaurants and bars owners each day who applied for a grant and never received one. But, then, weapons systems have been purchased because suppliers of components were spread across the country like tapenade on toast. 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. The restaurant industry reacts. 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. 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 act illustrates a timeless truth legislative bargaining is additive. As a result, the U.S. Congress introduced legislation called the Restaurant Revitalization Fund (RRF) to help restaurants get back on their feet. They have until March 2023 to spend the money. Consider the House-passed, $55 billion Restaurant Revitalization Fund Replenishment Act, which could be the No Faction Left Behind Act.. 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). 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. (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. Among its objectives, this report examines recipient characteristics, SBA's internal controls and fraud risk management practices, and SBA's efforts to monitor recipients. There comes a point where the right policy is: Stop smoothing. Supply chain shortages are still a massive problem for restaurants, and the cost of doing business grows by the day. 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 SBA will work with the Department of Justice to disburse the money, according to the NRA. This news doesnt exactly come as a surprise, but earlier this year, there was some hope that more money was coming. The first reports were due in December 2021, but 32 percent were overdue as of June 2022. Congress eventually set aside $28.6 billion dollars for the RRF in the American Rescue Plan Act. If H.R. 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. They are on the verge of closing permanently as a result.". (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. In the initial shutdowns, more than eight million industry employees were laid off or furloughed. Operators receiving funds should receive notification today and SBA will begin transmitting the grants next week. Access from your Country was disabled by the administrator. SBA requires recipients to report annually on fund use, but has taken limited steps to enforce reporting requirements and identify fraudulent or ineligible awards. In 2022, many RRF updates are in the works. Just over 100,000 businesses received funding (40 percent of eligible applicants). The Small Business Administration confirmed it will distribute $180 million in unspent money allocated for the Restaurant Revitalization Fund as awards, the National Restaurant Association said in an email to Restaurant Dive. The unfortunate outcome however was that the demand for the funds was far greater than the supply. 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. 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. What is the timeframe for using the RRF grant money? The restaurant industry was the hardest hit by the pandemic. "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. In 2020 and 2021, restaurants, bars, and other food service businesses experienced substantial revenue loss and unemployment resulting from the COVID-19 pandemic. Please enter a valid email and try again. RASI will only use your information to contact you about our products and services. Restaurant Revitalization Award Portal. The median award was about $126,000. "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. 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. Senha. 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. Dont do that. 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. Assessing controls and addressing deficiencies would help SBA better ensure program integrity. Hence the Replenishment Act. In January 2023, SBA stated that recipients have until March 2023 to exhaust RRF funds. The wisdom of those measures is debatable; the pain from them is undeniable. U.S. Small Business Administration RRF Award Portal, Restaurant Revitalization Funding Program. Taking additional steps to identify and address potentially fraudulent awards in a timely manner could help SBA recover funds. 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. Recipients cannot claim other expenses paid with RRF grant money as nonpayroll costs for purposes of PPP forgiveness. 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). 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. (Recommendation 7), Restaurant Revitalization Fund: Opportunities Exist to Improve Oversight. 11 a 13 de maio de 2022 - Lavras/MG. 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. 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. 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).