A bill  that would provide additional relief funding for hardest-hit small businesses has passed the House and is on its way to the Senate. HR 3807 – “Relief for Restaurants and other Hard Hit Small Businesses Act of 2022” amends the American Rescue Plan Act of 2021, to increase funding for the Restaurant Revitalization Fund (RRF) and other hard-hit small businesses.
The stand-alone bill requires a majority vote of 60 to pass the Senate before being sent to the President for signature.
Additional support for restaurants
This bill provides an additional $42 billion for the Restaurant Revitalization Fund, which was established to support restaurants and other food and beverage purveyors in response to COVID-19, but fell short, funding fewer than half of the qualifying applications submitted.
The bill proposes to establish a maximum for RRF grants, fully fund grants under a certain threshold, and reduce grants above that threshold by an equal percentage. The bill also proposes to make partial awards to eligible entities on a preliminary basis until the amount of funding required to fund grants to all eligible applicants is established, upon the completion of the reconsideration process.
Statement of operating status required
Other changes to the original RRF include a requirement of continuing operations for RRF applicants with pending applications. Applicants would be required to submit a statement to the Administrator of the Small Business Association (Administrator) indicating the applicant is still operating or intends to reopen within six months. The awards would be tax-exempt.
Hard-Hit Industries Award
The Hard Hit Industries Award would provide $13 billion in pandemic relief for eligible self-employed individuals and other small businesses such as gyms that meet the eligibility criteria.
A Hard Hit Industry is defined in HR 3807 as a small business concern that:
- employs 200 or fewer employees, and;
- suffered a pandemic-related revenue loss of 40 percent or greater, and;
- did not receive a Shuttered Venue Operators (SVO) grant, or a Restaurant Revitalization grant.
Shuttered Venue Operators Grant
The Shuttered Venue Operators Grant allowable period to incur SVOG funds would be extended to March 11, 2023, and funds not expended to be returned by April 15, 2023.
Have a question about what new pandemic relief funding could mean for your business or wondering if your organization qualifies for the Employee Retention Tax Credit (ERTC?) Contact us for a free consultation with a member of our COVID-19 Advisory Team – we’re here to help.