GRA Weekly

June 6, 2021

This week's newsletter is brought to you by Georgia Power.

RRF UPDATE

Restaurant Revitalization Fund – New Update on Funding

Monday, May 24th, the Small Business Administration (SBA) shut down the process to receive new applications for the RRF. The SBA testified on Wednesday, May 26th and gave some remarkable data on the state of the program and its popularity.

Over 362,000 applications submitted
$75 billion in funding requested
208,000 applications received from the “priority access” communities targeted under the RRF plan

The $50 billion shortfall in available funds means that many of the priority applications will not receive grants, and likely most of the non-priority ones.

The National Restaurant Association, Georgia Restaurant Association and our partners at other state restaurant associations are working with the sponsors of the RESTAURANTS Act on legislation that would provide an infusion of new dollars into the RRF program. This would allow continued relief grants to be distributed to an industry that remains incredibly vulnerable as we reopen our doors.

UPDATE: The replenishment proposal is expected to be unveiled later this week, most likely on Thursday. There is bipartisan support for adding funds to the RRF, but no word yet on what this might entail. We will generate grassroots support in asking Republicans and Democrats in Congress to cosponsor this needed plan. We will continue to keep you updated as we learn more.

To support additional RRF funding, sign the grassroots petition calling on all federal lawmakers—Congress and the Executive Branch—to provide additional relief to the restaurants that need it.

RRF BUDGET TRACKING TOOL

RRF Grant Budget Tracking Tool Available, Petition Open for Additional Funding

To help you plan your RRF Grant expenditures and ensure compliance with eligible grant-use requirements, our partners at the National Restaurant Association have created some useful tools:

Next Steps Guide will help walk you through the proper use of funds to help prepare your RRF budget, understand potential state or local tax liability, and prepare for the "Use of Funds" validation process
Budget Tracking Tool is a downloadable, easy-to-use spreadsheet designed to help you track expenses and facilitate SBA's annual validation process (developed in partnership with the American Institute of CPAs)

ERTC EXTENDED

ERTC Extended Through 2021

One especially bright spot of the American Rescue Plan Act is that the Employee Retention Tax Credit (ERTC) was extended from June 30 of this year to December 31. Now, if you’re eligible, you can access ERTC for up to $7,000 per eligible employee per quarter for all of 2021, for a potential total credit of $28,000 per eligible employee. Read More.

GRA PAC FUNDRAISER

Please join us on the banks of the Chattahoochee River for Wind Down by the River, a special reception in support of the National Restaurant Association Restaurant Political Action Committee and the GRA PAC*. Through your attendance and support, we are able to reach candidates who will advance a pro-restaurant pro-business legislative agenda, fight onerous legislation and address the issues that are most important to you.

Through your attendance and support, we are able to reach candidates who will advance a pro-restaurant pro-business legislative agenda, fight onerous legislation and address the issues that are most important to YOU.

Thursday, June 24 | 3:00PM - 5:00PM

ENERGY STAR®

Combi Ovens: worth their weight in versatility

With its ability to operate as an oven, a steamer or a combination of both, the ENERGY STAR® certified electric combi oven is positioned to be your kitchen’s workhorse. According to energystar.gov, these combi ovens are 20% more efficient than standard models and can save you an average of $7,450 on utility bills over the product’s lifetime. They have cooking times that are approximately 25% faster than traditional ovens and produce uniform oven temperatures that provide consistent, even cooking as well as precise control during the cooking process. Connect with your foodservice equipment distributor today or contact us at 1-877-310-5607 to learn more.

COVID-19 EIDL

There's still time to apply for a COVID-19 EIDL

Eligible small businesses, nonprofits, sole proprietors and independent contractors can still apply for a COVID-19 Economic Injury Disaster Loan. Learn more about EIDL, the Targeted EIDL Advance and Supplemental Targeted Advance. Learn More.

BIDEN TAX PROPOSALS

Higher Rates and a Broader Base: Details Released on Biden Tax Proposals

The Biden Administration released a fiscal year 2022 budget proposal on May 28 that adjusts tax rates on businesses and high-income individuals to finance both traditional physical infrastructure projects and “human” infrastructure programs. These recommendations, outlined in the American Jobs Plan and American Families Plan, are shared with Congress as they consider legislation in coming months.

What Is Included in the Biden Administration Recommendations:

Increases the corporate tax rate to 28% from 21%, effective in 2022.
Establishes a minimum corporate tax of 15% for large businesses.
Increases the top individual income tax rate from 37%* to 39.6%* and tax income from long-term capital gains and carried interest at ordinary rates for upper income households.*This does not include the existing 3.8% net investment income (NII) tax.
Eliminates the “step-up” in basis for inherited assets in excess of $1 million per-person.
Revises the global Minimum Tax regime, disallows deductions attributable to exempt income, and limits corporate inversions.

What Isn’t Included in the Biden Administration Recommendations:

Changes to Section 199A deduction, which provides many small “pass-through” businesses with a 20% rate cut on business income reported on individual tax returns.
Other than the step-up basis elimination, no additional increase to the estate tax.
No extension of the individual tax rates established in 2017, many of which expire in 2025.

Process in Congress:

The budget request is non-binding, as only Congress can author tax legislation. Legislators are expected to address these policies in two phases: first, the infrastructure / American Jobs Plan, and second the American Families Plan. Both House Speaker Nancy Pelosi (D-CA) and Senate Majority Leader Charles Schumer (D-NY) want to move legislation before the August recess.