Published May 24, 2022 Thai Phi Le Senior Managing Editor Congress eventually set aside $28.6 billion dollars for the RRF in the American Rescue Plan Act. 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 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. 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. According to the SBA, the grants are being released to operators in the order their applications were received. About 43 percent had 2019 revenue of $500,000 or less. While SBA prevented over 30,000 suspicious applications from receiving awards, GAO identified systemic control weaknesses. The freshest news from the food world every day. 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. Open

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. Restaurant Industry News and Resources in Georgia. (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. 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. SBA stated that the agency will review a sample of RRF awards and use the results of this review to inform the effectiveness of its post-award procedures. 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. "We hear from restaurants and bars owners each day who applied for a grant and never received one. In GovTrack.us, a database of bills in the U.S. Congress. H.R. Its an AI bot. Restaurant Revitalization Award Portal. As a restaurant owner, youve most definitely heard about the varying RRF updates throughout the last year, how they could possibly impact your establishment, and more. However, in May, the Senate didn't pass the proposed increase, which was viewed by many as a setback. 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. Or 28,399 closures. The bill would provide $42 billion to replenish the RRF. By the time it closed in July 2021, the RRF. SBA disagreed with five recommendations, including to assess pre-award controls and implement a plan to address fraudulent or ineligible awards. Cardin's bill, S.4008, would provide $40 billion in additional funding for the Restaurant Revitalization Fund. From independent operators to hospitality groups, most are disappointed and some are angry that there remains no federal aid to support struggling restaurants. RASI will only use your information to contact you about our products and services. Together with 52 State Associations, we are a network of professional organizations dedicated to serving every restaurant through advocacy, education, and food safety. The bill is co-sponsored by Sen. Roger Wicker (R-MS) and includes additional funds for gyms, live venues and transit systems, among other business categories. LISTEN TO THE QUICK UPDATE PODCAST BELOW! The RRF is actually part of the American Rescue Plan Act (ARPA), which was established in March 2021. 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. And it underscores the inevitable inequities that accompany large-scale government interventions in the economy. 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. Curso de Amostrador 2022. 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 Recipients cannot claim wages paid with RRF grant money as wages for purposes of the ERTC or PPP forgiveness. 200Littleton, Colorado 80120. the aid could benefit? 3807), which would refill the Restaurant Revitalization Fund with $42 billion,was reintroduced in. In addition to restaurants and bars, eligible businesses include food trucks, bakeries, wineries or breweries and inns. H.R.3807 - Restaurant Revitalization Fund Replenishment Act of 2021 117th Congress (2021-2022) Bill Hide Overview More on This Bill Constitutional Authority Statement CBO Cost Estimates [0] Subject Policy Area: Commerce View subjects Give Feedback on This Bill Contact Your Member Summary (2) Text (3) Actions (17) Titles (3) Amendments (1) 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 CARES Act includes a provision for GAO to monitor federal efforts to respond to the COVID-19 pandemic. Are there any reporting requirements for RRF grant recipients? (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. 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. According to reporting from CNNs Manu Raju, Senate small business and entrepreneurship committee chairman Ben Cardin said on Tuesday, March 8 that Republican opposition means that the Restaurant Revitalization Fund (RRF) will not be replenished. Past-due expenses qualify as RRF expenses. 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. The House is expected to vote on the bill,which has a mix of 234 Democratic and Republican sponsors, this week. 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 To amend the American Rescue Plan Act of 2021 to increase appropriations to the Restaurant Revitalization Fund, and for other purposes. Please enter a valid email and try again. The NRA wrote a letter to Congress on Monday urging policymakers to pass legislation that would refill the fund. 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. Consider the House-passed, $55 billion Restaurant Revitalization Fund Replenishment Act, which could be the No Faction Left Behind Act.. Wenn Sie Ihre Auswahl anpassen mchten, klicken Sie auf Datenschutzeinstellungen verwalten. There comes a point where the right policy is: Stop smoothing. Number of Restaurant Revitalization Fund Applications by Eligibility and Funding Status. 11 a 13 de maio de 2022 - Lavras/MG. 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. 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. 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. The median award was about $126,000. from 8 AM - 9 PM ET. Let Restaurant Dive's free newsletter keep you informed, straight from your inbox. Most recipients (72 percent) reported they were owned by women, veterans, or members of socially and economically disadvantaged groups. The restaurant industry reacts. This recommendation will remain open until SBA provides evidence of using enforcement data (e.g., information on suspicious borrowers provided by the Department of Justice or SBA's Office of Inspector General) on suspected fraud in other SBA programs to identify potential fraud in RRF recipients. 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. 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). With so many questions surrounding the RRF, we created this resource and guide to provide answers. What is the timeframe for using the RRF grant money? Even the Restaurant Revitalization Fund, with its paltry $28.6 billion in initial funding, wasn't enough to meaningfully help most establishments. 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. The $55 billion bill would largely replenish a grant program created by the American Rescue Plan that provides assistance to restaurants. "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. After this money was distributed, more than 177,000 applications were left in limbo at the SBA. SBA stopped accepting applications in July 2021 with the program oversubscribed and almost all its funds disbursed. The American Rescue Plan created the Restaurant Revitalization Fund. U.S. Small Business Administration RRF Award Portal, Restaurant Revitalization Funding Program. ), buses and ferries, etc. According to the letter, while the rest of the economy continues to quickly add jobs, restaurant industry job growth in . 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 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). Publicly Released: Jul 14, 2022. Christian Britschgi is dubious. For more information, please check out our Privacy Policy. For an optimal experience visit our site on another browser. The Association was first to lay out the plan for a restaurant industry recovery fund to Congress in April 2020. Stay informed as we add new reports & testimonies. In March 2021, Congress appropriated $28.6 billion to SBA for a Restaurant Revitalization Fund to assist the industry. Nevertheless, the Replenishment bill barely passed the House 223 to 203 in April, with only six Republicans favoring it and only four Democrats opposed. The bill also would provide $13 billion for a Hard Hit Industries Award Program for small "We must continue to look forward because the enormous challenges of the industry will continue beyond today. This will remain until they fully expend the grant funding or the covered period expires. For more information about the SBA, visit sba.gov. The Restaurant Revitalization Fund was established in March 2021 to support eligible entities suffering revenue losses from the COVID-19 pandemic. The Relief for Restaurants and Other Hard Hit Small Businesses Act of 2022 (H.R. According to the SBA, the RRF provided $28.6 billion to more than 100,000 restaurants, bars, and other businesses that provide on-site food and drink. (Recommendation 7), Restaurant Revitalization Fund: Opportunities Exist to Improve Oversight. Lawmakers. Assessing controls and addressing deficiencies would help SBA better ensure program integrity. By June 2021, the fund's $28.6 billion had been disbursed to 100,000 applicants in grants averaging $283,000. UPDATE: April 6, 2022:Sen. Benjamin Cardin (D-MD) introduced a bill similar to the one before the House Tuesday night. Joanna Fantozzi | Apr 06, 2022. More than 90,000 restaurants closed permanently or long-term because of the pandemic. 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. The SBA will work with the Department of Justice to disburse the money, according to the NRA. SBA stated that the results of the analysis are scheduled to be completed by March 2023. 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. A requirement for annual reporting submissions applies to any applicant who doesnt fully expend RRF grant funds before December 31, 2021. On April 7, 2022, the House passed H.R.