Registered in England and Wales. Aggregate grant amounts are capped at $1 million. 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? Loans will eventually come due, landlords are already asking for their back rent, and diners budgets are feeling especially pinched thanks to rising inflation. Following the publication of this report, The National Restaurant Association sent a letter to the SBA asking the government organization to disseminate the remainder of the available funds. Ben Cardin (D-Md) and Roger Wicker (R-Miss) had majority support, but not 60 votes to overcome a filibuster. 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. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. 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. 3. https://restaurant.org/research-and-media/research/industry-statistics/national-statistics/ While there are valid questions about government spending and inflation, restaurants should not be caught in the crossfire.. Arriving as federal spending has driven inflation to a 40-year high, the Replenishment Act indicates disregard for this rule: When you are in a hole, quit digging. Presumably, most of the independent restaurateurs across the country werent holding their breath and waiting for the federal government to step in and save them, but what comes next could be particularly bleak, even for establishments that have been successful despite making it through the darkest days of the pandemic. 2021 National Restaurant Association. 3807. (. In California, according to the California Restaurant Association2,a third of restaurantsare estimatedto have closed permanently due to the pandemic. That is a serious consideration. The act illustrates a timeless truth legislative bargaining is additive. The average grant last year averaged $283,000. Rescuing restaurants (again) ought to give Congress indigestion, Sign up for a weekly roundup of thought-provoking ideas and debates, Jon Stewart shows Democrats how to respond to GOP cruelty, Indianas cruel abortion bill is a warning of post-Roe reality. [chamberOfAction] => House Just after three weeks of launch, the fund aided 101,000 businesses, but left another 177,000 qualified applicants in a bind; among them were about 20,000 in California. Adopted: 73, H-312, The Capitol 1033: Restaurant Revitalization Fund Award Disbursements, May 3July 1, 2021. Lines and paragraphs break automatically. Web page addresses and e-mail addresses turn into links automatically. For a year the National Restaurant Association and its allies inside and outside of Congress, including the tireless Sue Bette of Burlington, Vermonts Bluebird BBQ restaurant, have been lobbying and working Congress for a replenishment of the RRF to give relief funds to all of the restaurants that applied in 2021 but received nothing. The U.S. Senate on Thursday ended the possibility of replenishing the Restaurant Revitalization Fund when a $48 billion bill to provide relief to small businesses hit by COVID restrictions could not generate enough votes to overcome a filibuster. Downs Rachlin Martin PLLC var today = new Date(); var yyyy = today.getFullYear();document.write(yyyy + " "); | Attorney Advertising. While ARPA does direct returned or reclaimed RRF awards to the Department of Treasury, it would be consistent with the spirit of the law to utilize all unobligated funds to address the RRF shortfall. Local restaurants across the country expected help but the Senate couldnt finish the job, Erika Polmar, executive director of the Independent Restaurant Coalition, said in a statement. 123). The Independent Restaurant Council estimates that more than half of the 177,300 independent establishments waiting on RRF grants will close without that additional aid. ), buses and ferries, etc. Restaurants that are still trying to make up for what was lost in the pandemic today are struggling with workforce shortages, record-high inflation and supply chain constraints, Michelle Korsmo, president and CEO of the association, said in a statement. SBA disagreed with five recommendations, including to assess pre-award controls and implement a plan to address fraudulent or ineligible awards. Pat Leahy and Bernie Sanders, supported the Replenishment Act.) Food costs are also on the rise, labor is (rightfully) more expensive than ever, and that means that even the most beloved establishments, places that actually make money during more normal times, could be at the risk of closing their doors. ORDER YOUR 2022 IMPACT DATABANK REPORTS. The Small Business COVID Relief Act of 2022, sponsored by Sens. On Thursday, the Senate voted down the Small Business COVID Relief Act of 2022, which wouldve added $40 billion in relief for the thousands of restaurant owners across the country still struggling after shutdowns, staffing shortages, and more operational woes caused by the COVID-19 pandemic. Tired of reading? Provides one motion to recommit. Placed on Senate Legislative Calendar under General Orders. Number of Restaurant Revitalization Fund Applications by Eligibility and Funding Status. Array Among its objectives, this report examines recipient characteristics, SBA's internal controls and fraud risk management practices, and SBA's efforts to monitor recipients. As a result of these findings, the Government Accountability Office made several recommendations to the SBA on rectifying some of these errors, though the SBA disagreed with several, including a plan to address fraud and recipients that should have been deemed ineligible. Whether softened or cold or room temperature, applying the right kind of butter can be surprisingly tricky, voted down the Small Business COVID Relief Act of 202, estimated 90,000 restaurants have already closed their doors during the pandemic, Biden administration official hinted that there might be something small in terms of an aid package, was one of only a few lawmakers in any party to argue that restaurants be prioritized in any upcoming aid bills, How to Celebrate a Birthday in New York City, Where to Get Even Better Choco Tacos Around the Country, A Strawberry Scones Recipe That Gets It Right. About the National Restaurant Association
REPORTED BY A RECORD VOTE of 7-3 on Wednesday, April 6, 2022. Six other Republicans signed on as co-sponsors. 387. The writing has been on the wall for the RRFs death knell for months. 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. [externalActionCode] => 8000
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. But what about those other small businesses (gyms, minor league baseball, etc.) The bill designates the funding as emergency spending, which is exempt from discretionary spending limits. According to the report, 88% of applicants were eligible for funding but only 40% ended up receiving Restaurant Revitalization Fund money. 3807, as introduced, with modifications. The Government Accountability Office analyzed weakness and issues with the Restaurant Revitalization Fund program, which appropriated $28.6 billion to the foodservice industry in 2021. The bill would have added $40 billion to the RRF, which would have provided enough funding for some 177,000 restaurants that thought theyd receive aid last year but could not when the original fund ran out. [] We urge the SBA to take every step to disburse all remaining funds in a fair and timely manner.. Here are the steps for Status of Legislation: Relief for Restaurants and other Hard Hit Small Businesses Act of 2022. SBA requires recipients to report annually on fund use, but has taken limited steps to enforce reporting requirements and identify fraudulent or ineligible awards. The House on Thursday approved more than $40 billion in COVID-19 assistance for restaurant owners who applied but were unable to receive assistance from the federal Restaurant Revitalization Fund. Published: Jul 14, 2022. Bill Introduced in Congress to Replenish the RRF, Senate Filibuster Kills The RRF Replenishment Act, Captive Insurance Update | Fall Edition | 2022, Early Mental Health Intervention Improves TBI Outcomes, Means Plus Function Williamson Removed The Heavy Presumption But Dyfan And VDPP Pack Some of the Pounds Back On. When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Agreed to by record vote of218-206, after agreeing to the previous question by record vote of221-206, on April 6, 2022. FLOOR ACTION ON H. RES. Sign up to receive texts from Restaurant Business on news and insights that matter to your brand. And, of course, when those restaurants close, thousands of people will lose their jobs, communities will lose their favorite establishments, and business owners will be left in untold debt after trying to keep the doors open for so long. Provides that an amendment in the nature of a substitute consisting of the text of Rules Committee Print 117-39, modified by the amendment printed in the Rules Committee report, shall be considered as adopted and the bill, as amended, shall be considered as read. Showing the text of H.R. All rights reserved. [externalActionCode] => 1000 COMMITTEE ACTION: SBA agreed or partially agreed with two recommendations. So, in March 2021, seasonal compassion reinforced a political temptation for all seasons Congresss temptation to make life less unfair. People are still struggling to get their balance, Blumenauer said Thursday after the vote. Tuesday, April 5, 2022 - 1:30pm H-313, The Capitol View Announcement . (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. Composting in NYC is hard. What to do? Nations Restaurant News has reached out to the U.S. Small Business Administration for more information on the unobligated funds and will update this story with the administrations responses. How many restaurants that eventually closed their doors could have survived with full funding of the RRF, we will probably never know. And SBA has not proactively used data analytics or information from enforcement entities to identify potentially fraudulent award recipients. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Congress can talk about refilling the Restaurant Revitalization Fund, but it can never be full enough to service all factions who can claim, with some plausibility, that they experienced unfairness not easily distinguished from that suffered by factions who benefited from the first $28 billion. Funds may be used for expenses including mortgage, rent, and utility payments and payroll. 4. But it flagged 4,000 award recipients for suspected fraud and isn't taking timely action to address them. In 2020 and 2021, restaurants, bars, and other food service businesses experienced substantial revenue loss and unemployment resulting from the COVID-19 pandemic. Related: Senate votes to kill the $40 billion Restaurant Revitalization Fund round two. About 40% of eligible applicants received awards from the resulting Restaurant Revitalization Fund before it was depleted. The Restaurant Revitalization Fund depleted quickly as the number of applicants surpassed the number of available funds. Restaurant & Hospitality Leadership Center, Food Safety & Quality Assurance Conference, Commitment to Diversity, Equity and Inclusion, Multicultural Foodservice & Hospitality Alliance, Hopes of Replenishing RRF Dashed by Senate, National Restaurant Association Show 2022. What is the difference between a Common Interest Community and a Condominium? Well, then, what about that will-o-the-wisp, fairness? For more information, visit Restaurant.org and find @WeRRestaurantson Twitter, Facebook and YouTube. (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. And by the third quarter of 2021, Britschgi writes, the number of restaurants had surpassed pre-pandemic levels.. And for those restaurants that did have to close their doors, replenishment of the RRF would be of no help now. About us. [chamberOfAction] => House [actionDate] => 2022-04-07 This plan should include coordinating with the OIG to align efforts to address fraud. formId: "04813a8e-4baa-4f0a-9f88-e3e126f366b0" Fax: (202) 226-9191, Committee ChairmanJames P. McGovern2nd District of Massachusetts. [displayText] => Passed/agreed to in House: On passage Passed by the Yeas and Nays: 223 - 203 (Roll no. 3807 [Part II]. Showing the differences between H.R. Nationally, according to the National Restaurant Association3, restaurant industry sales remain down $65 billion from 2019s pre-pandemic levels, and 90,000 restaurants nationwide are temporarily or permanently closed. The bill1passed by a vote of 223 to 203, adding another $42 billion to the restaurant fund and providing another $13 billion to other businesses still struggling to recover from the COVID-19 catastrophe. The $40 billion renewal of the Restaurant Revitalization Fund (RRF) failed along with the broader Small Business COVID Relief Act of 2022, which gained 52 yes votes in the chamber, short of the 60 votes needed to overcome a Republican filibuster. Publicly Released: Jul 14, 2022. Examples: "Trade Relations", "Export Controls", Examples: hr5, h.r.5, sjres8, sa2, pl116-21, 86Stat1326, Examples: trade sanctions reform, small modular reactor, Examples: hr5, h.r.5, sjres8, s2, 90stat2495, Examples: hr5021, H.Res.866, sconres15, S.51, 117pl2, 117-2, Examples: "enrolled bill signed", "leak detection dog", Examples: general, "deputy under secretary", Examples: baseball, "standing rules", "Presidential Address", Examples: EC6228, r12313, PM45, PT83, ML160, Examples: "trade relations", "Export Control Act". Most recipients (72 percent) reported they were owned by women, veterans, or members of socially and economically disadvantaged groups. In January, a Biden administration official hinted that there might be something small in terms of an aid package, which far was from confidence-inspiring. 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). By continuing to browse this website you accept the use of cookies. Cresco Expands In Florida, With U.S. Retail Footprint Reaching 50 Locations, Wine Spectator: Bordeaux Begins 2021 Futures Campaign In Challenging Times.