GRA Weekly | April 4, 2021

GRA Weekly

April 4, 2021

This week's newsletter is brought to you by the UGA Small Business Development Center

GOVERNOR KEMP SIGNS 3 NEW EXECUTIVE ORDERS

On Wednesday, March 31, Governor Brian P. Kemp signed three Executive Orders relating to COVID-19 in Georgia. The first, Executive Order 03.31.21.01, extends the Public Health State of Emergency through April 30, 2021. The second, Executive Order 03.31.21.02, extends the current COVID-19 guidance in Georgia until April 7 with an added provision allowing state agency employees to get a COVID vaccine without using sick leave or annual leave. The third order, Executive Order 03.31.21.03, will become effective on April 8 and will roll back many of the current COVID-19 restrictions in place.

More details on all three Executive Orders, Restaurant & Dining Sections are below:

Executive Order 03.31.21.02

Effective from March 31, 2021 at 12:00AM until April 7, 2021 at 11:59PM
Extends Executive Order 03.12.21.01 by one week
Restaurants must still maintain six (6) feet social distancing
Restaurant employees must still wear facial coverings when interacting with guests

Executive Order 03.31.21.03

Effective from April 8, 2021 at 12:00AM until April 30, 2021 at 11:59PM
Removes the gatherings ban
Reduces any remaining distance requirements (i.e. distance between parties at restaurants, bars)
Eliminates the ability of law enforcement to close an organization for failure to comply with the Executive Order provisions
NEW Entrance sign language (as of April 8, 2021)

PPP + RRF UPDATE

President Joe Biden signed the PPP Extension Act into law.

This extension is something GRA and our members have been persistently advocating for - to extend the Payroll Protection Program through the May 31, 2021 (previously March 31, 2021) to allow more time to spend money still in the program. The bill also provides an additional 30 days after May 31st for the Small Business Administration to process pending applications.

DUNS Number No Longer Needed

The U.S. Small Business Administration confirmed early last week that applicants for the Restaurant Revitalization Grant program will not need to register for a DUNS number or on SAM.gov. This is a change from early March, when it was expected that applications would require this process as they currently do under the Shuttered Venues Operators (SVO) grant program. The shift by SBA recognized the significant demand for the restaurant recovery program. Read More.

Your Biggest Questions, Answered

Don't miss out on this resource from National Restaurant Association. As they work with the Small Business Administration (SBA) on setting up and implementing the Restaurant Revitalization Fund (RRF), this resource page will serve as a central hub of the very latest information from the Association and SBA. Check back for important updates, including explainer documents, videos, and webinars. https://restaurantsact.com/rrf/

2021 LEGISLATIVE SESSION RECAP

In Case You Missed It

On Wednesday, March 31, the Georgia General Assembly completed Day 40, the last day of legislative session for 2021. The Georgia Restaurant Association serves as the voice of restaurants to our State Senators and Representatives throughout session on issues that impact your business. Issues the GRA works on with legislators include labor, economic development, regulatory issues, and much more. Below are some key issues that directly affect your business:

On the Governor's Desk

Cocktails-To-Go: SB 236 (by Senator Matt Brass) allows local governments to choose whether or not to prohibit restaurants from having the ability to sell cocktails for to-go or curbside pick-up orders, not for delivery. Some conditions for a restaurant include: beverages must be in a tamper proof, sealed container, must be sold with food entrees, a cocktail must contain no more than 3 ounces of distilled spirits, and can only sell two (2) mixed drinks per entrée sold. If the Governor signs this bill into law, the Department of Revenue may issue regulations and the GRA will conduct a webinar with them to ensure all restaurants are compliant.
COVID-19 Liability Protection (extended): HB 112 (by Representative Trey Kelley) extends the COVID-19 liability protection from last year until July 14, 2022.
Fuel Choice Legislation: HB 150 (by Representative Bruce Williamson) prevents local governments from enacting ordinances, resolutions, or regulations through building codes that would ban a specific type of fuel from being used. This does not prevent local governments from offering incentives to use a specific type of fuel. As an example, a local government could not ban gas this year and then ban electricity in 20 years.
Hotel Service & Off Premise Distancing Requirements: HB 392 (by Representative Jason Ridley) made a change in order to allow a person to have a mixed cocktail or draft beer from the hotel delivered to their room by a hotel employee. In addition, it changes school grounds to school buildings when determining distance for package stores and sets a new state minimum.

In Effect Today

Internal Revenue Code Update: HB 265 (by Representative David Knight) updates Georgia Revenue Codes to match the Federal code. This update includes: 1. State will not collect income tax on PPP loans; 2. Business expenses are still deductible; 3. Includes 100% business meal deductions
Innovative Ways to Maximize Global Talent Study Committee: HR 11 (by Representative Wes Cantrell) creates a Study Committee with a goal to increase support of our foreign-born Georgians that will help find innovative ways to spark economic growth and create a sustainable recovery for all of Georgia.

Bills Returning for Consideration in 2022 (2^nd half of session)

Cap 3^rd Party Delivery Fees: SB 205 (by Senator Elena Parent) create a cap on 3^rd Party Delivery fees to 15% when in a State of Emergency. This will open up more discussions regarding business relations and practices between 3^rdParty Delivery companies and restaurants.
State appoints District Health Directors: SB 256 (by Senator Dean Burke) changes how District Health Directors would be appointed by the State Department of Health instead of local boards. This would have promoted unity throughout the state.
Repeal State & Local Alcohol Excise Taxes: HB 805 (by Representative Kasey Carpenter) repeal State & Local alcohol excise taxes and replace it with a 1% sales tax.

NATIONAL RESTAURANT ASSOCIATION FIGHTS BACK

Statement on JAMA’s, “Mask Mandates, On-Premises Dining, and COVID-19”

On Friday, April 2, the Journal of the American Medical Association (JAMA) unfairly targeted restaurants and ignored that there is no evidence that directly links COVID-19 outbreaks to restaurants.

As states have reopened, and in some cases eliminated mask mandates, all types of public establishments have reopened including gyms, retail establishments, places of worship, stand-alone bars, event venues, and more. The myopic focus on restaurants as the cause of COVID-19 transmission is flawed. Moreover, today’s virus transmission environment is dramatically different than it was in 2020. The study authors rely on data gathered from March 2020 through December 2020. Due to the work of their other colleagues in the scientific community (who are committed to fact-based evidence gathering and proper application of the scientific method), there are now several vaccines in widespread distribution.

Read Full Statement.

IRS RELEASES ERTC GUIDANCE

IRS provides guidance for employers claiming the Employee Retention Credit for first two quarters of 2021

WASHINGTON – The Internal Revenue Service today issued guidance for employers claiming the Employee Retention Credit under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) modified by the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act).

Notice 2021-23 explains the changes to the Employee Retention Credit for the first two calendar quarters of 2021, including:

the increase in the maximum credit amount,
the expansion of the category of employers that may be eligible to claim the credit,
modifications to the gross receipts test,
revisions to the definition of qualified wages, and
new restrictions on the ability of eligible employers to request an advance payment of the credit.

2021 PUBLIC AFFAIRS CONFERENCE

Have you registered yet for the 2021 Virtual National Restaurant Association Public Affairs Conference?

For 35 years, this event has brought together the leaders of our industry for a dialogue with national policymakers and thought-leaders on our public policy priorities. And while we can’t meet in person this year, there has never been a more critical time for our industry to come together with one voice to advocate for our industry. GRA members can receive a discount by using this discount code: PAFCMEMBER

BIDEN INTRODUCES AMERICAN JOBS PLAN

Wednesday, March 31, President Biden released his America Jobs Plan aimed at building our nation’s infrastructure. While the $2.25 trillion legislation will cover a variety of initiatives, the following provisions would have an impact on the restaurant industry. The Administration also plans a second major package next month focused on social measures, including expanding health care and paid-leave access and extending the child tax credit.

Tax Increases

Tax increases will be used to pay for the plan
U.S. corporate income tax would increase to 28% from 21%, and a 21% minimum tax will be set on global corporate earnings.
Institute a 15% minimum tax on a corporation’s profits for financial reporting purposes
Additional funding for the IRS to increase audits on corporations

Labor Provisions

Calls on Congress to pass the pro-union Protecting the Right to Organize (PRO) Act.
Asks Congress to tie federal investments in clean energy and infrastructure to prevailing wage laws, and requires that investments in transportation meet existing transit labor protections.

Small Business and Workforce Development

$100 billion for workforce-development programs, including training for those who have lost their jobs, as well as apprenticeship initiatives.
Invest in HUD’s Community Development Block Grant Programs and tax credits for small businesses to invest in disaster resilience
$5 billion for a new Rural Partnership Program to help rural region’s economic development needs.
Calls on Congress to invest $31 billion in programs that give small businesses access to credit, venture capital, and R&D dollars. Also includes funding for community based small business incubators and innovation hubs.

Read the Full Summary.

RESTAURANT RESET WEBINAR SERIES

The Restaurant Reset series, presented by the University of Georgia Small Business Development Center, is designed to train restaurant owners and operators in the areas they need for their business to be successful.

Over seven sessions, topics include: financing, marketing, customer retention, alternative lending, finding and retaining employees and expanding food services. Taught by a team of restaurant experts – you will leave with a better understanding of steps needed to ensure your venture is a success.

CORONAVIRUS RESTAURANT IMPACT SURVEY

The National Restaurant Association is collecting information on the economic impact of the Coronavirus (COVID-19) outbreak. Please be assured that all information provided is anonymous and strictly confidential. The survey should take no more than 10 minutes to complete. Please submit a completed survey by April 8.

Take the Survey Here.