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. ), buses and ferries, etc. LOOK What Happened When This Restaurant Posted a Politically Incorrect Sign. The House is expected to vote on the bill,which has a mix of 234 Democratic and Republican sponsors, this week. H.R. This recommendation will remain open until SBA provides evidence of conducting data analytics across RRF awards to detect potentially fraudulent recipients. After congress walked away from the funds replenishment in March 2022 and the Senate failed to pass the replenishment in May 2022, 177,000 establishments were left without aid. Use of Funds Validation is now available for Restaurant Revitalization Fund awardees. Published May 24, 2022 Thai Phi Le Senior Managing Editor This deadline had many restaurants wondering who is eligible, when to expect additional RRF updates to the legislation, if any additional RRF forgiveness has been granted, and which anti-fraud mechanisms were put in place to determine which claims are legitimate. However, in May, the Senate didnt pass the proposed increase, which was viewed by many as a setback. (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. Many independently owned restaurants havent been anywhere near profitable since the pandemic began, and its clear that many of them are in a hole that theyll never be able to dig themselves out of. All of the funds had to be used for valid cases and claims up to March 11, 2023. Stay informed as we add new reports & testimonies. After this money was distributed, more than 177,000 applications were left in limbo at the SBA. 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. If H.R. The House passed the Relief for Restaurants and other Hard Hit Small Businesses Act of 2022 (H.R. However, in May, the Senate didn't pass the proposed increase, which was viewed by many as a setback. 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. 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. 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). from 8 AM - 9 PM ET. Press Releases | National Restaurant Association 3807), that included $42 billion to replenish the RRF, on April 7. A requirement for annual reporting submissions applies to any applicant who doesnt fully expend RRF grant funds before December 31, 2021. Stay up to date on the news from Silicon Valley, and how to take back control of your data and devices. A similar attempt to refill the RRF was left out of the omnibus spending bill earlier this year. By contrast, almost half of restaurants that didn't receive RRF funding said it's unlikely they will survive the pandemic, and 94% reported an RRF grant would allow them to retain or rehire staff, according to NRA research. Restaurant owners have taken on substantial debt and tapped into their own savings accounts, just in an effort to keep the doors open. The SBA is set to award an added $180 million in unspent funds allocated for the Restaurant Revitalization Fund (RRF) back in 2021. 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. 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. Something went wrong. And by the third quarter of 2021, Britschgi writes, the number of restaurants had surpassed pre-pandemic levels.. 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 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. Lawmakers approved the measure in a 223-203 vote, with only about a handful of Republicans backing it. (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. 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. Painel do Inscrito. 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. Copyright 1999 2023 GoDaddy Operating Company, LLC. Roger Wicker (R-MS) and Kyrsten Sinema (D-AZ), signed the letter . Esqueci minha senha. Restaurant Revitalization Fund Distributes $83M in Remaining Funds Restaurant Revitalization Fund Approaches Final Stand 3807), which would refill the Restaurant Revitalization Fund with $42 billion,was reintroduced in. Hence the Replenishment Act. Taking additional steps to identify and address potentially fraudulent awards in a timely manner could help SBA recover funds. (Recommendation 7), Restaurant Revitalization Fund: Opportunities Exist to Improve Oversight. "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. 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 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. This government aide says it knows what voters want. ABC News reported on the story, where Anon explained how he was fed up with how sensitive people have gotten . To amend the American Rescue Plan Act of 2021 to increase appropriations to the Restaurant Revitalization Fund, and for other purposes. Brands like Chipotle, McDonalds and Starbucksarewalking a tightrope charge enough to protect the bottom line without alienating customers. 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 median award was about $126,000. Recipients cannot claim wages paid with RRF grant money as wages for purposes of the ERTC or PPP forgiveness. While SBA prevented over 30,000 suspicious applications from receiving awards, GAO identified systemic control weaknesses. Both political parties agreed that the RRF should be replenished but couldn't reach a consensus on how to pay for it. But it flagged 4,000 award recipients for suspected fraud and isn't taking timely action to address them. This recommendation will remain open until SBA develops and implements a plan to respond to potentially fraudulent and ineligible awards in a prompt manner. Do it again, but bigger. What to do? And stop digging. For instance, it prevented over 30,000 suspicious applications from receiving awards. Is the grant money taxable and are the expenses deductible? In addition to restaurants and bars, eligible businesses include food trucks, bakeries, wineries or breweries and inns. 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. There comes a point where the right policy is: Stop smoothing. All Applicants that do not fully expend award funds . Among its objectives, this report examines recipient characteristics, SBA's internal controls and fraud risk management practices, and SBA's efforts to monitor recipients. Let Restaurant Dive's free newsletter keep you informed, straight from your inbox. According to the SBA, they received more than 278,000 applications by June 30th, 2021, seeking more than $72.2 billion in funding. The Small Business Administration (SBA) began accepting applications and awarding funds in May 2021. In 2020, independent locations declined by 8 percent, according to The NPD Group. Restaurant Revitalization Fund Award Disbursements, May 3July 1, 2021. Updated August 15, 2022 SBA Restaurant Revitalization Fund Grants In January 2023, SBA stated that it follows standard operating procedures to refer suspicious activity to the OIG. 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.