GRA Weekly | March 14, 2021

GRA Weekly

March 14, 2021

RRF TO PROVIDE MORE THAN $28.6B IN AID TO RESTAURANTS

March 11, 2021 - President Joe Biden signed the American Rescue Plan Act into law, which included the $28.6 billion Restaurant Revitalization Fund (RRF). The RRF is a critical tool for the survival and recovery of Georgia’s restaurants which have been hardest hit by COVID-19 impacts. Since the beginning of the pandemic, the national restaurant industry has experienced more than $250 billion in losses, and more than 4,000 restaurants have closed in Georgia. The RRF provides much-needed targeted relief for our industry.

“Since the beginning of the COVID-19 pandemic, the restaurant industry has been hit harder than any other industry with more than $250 billion in losses and the closing of more than 110,000 restaurants – 4,000 of which are in Georgia,” said Karen Bremer, CAE, President and CEO of the Georgia Restaurant Association (GRA). “Our state is known for its southern hospitality and amazing restaurants and we knew this crisis would be the worst we have ever seen. Through persistence with our partners at the National Restaurant Association, we have advocated for targeted relief since March 2020, and the passage of the Restaurant Revitalization Fund brings hope for survival and recovery. We still have a long way to go, but today is a wonderful day for Georgia’s restaurants.”

The RRF will create a new federal program for restaurant owners with 20 or fewer locations. Operators can apply for tax-free grants of up to $5 million per location or up to $10 million for multi-location operations. The grant amount is determined by subtracting 2020 sales from 2019 revenues.

Funds from the grants can be spent on a wider range of expenses than previous relief programs, including mortgages or rent, utilities, supplies, food and beverage inventory, payroll, and operational expenses. There will be $5 billion of the fund set aside for restaurants with gross receipts under $500,000 and, for the first three weeks of the application period, the Small Business Administration (SBA) will prioritize awarding grants for women-, veteran-, or socially and economically disadvantaged-owned businesses.

For an overview of the Restaurant Revitalization Fund, click here.

For more information on the Georgia Restaurant Association (GRA), visit our website.

GEORGIA LEGISLATIVE UPDATE

The Georgia General Assembly has completed 31 out of 40 Legislative Days and will convene on Monday for Legislative Day 32. Here are the top bills the GRA is watching:

SB 236 | Mixed Drinks To-Go: This bill would allow food service establishments to sell up 2 mixed drinks per entrée ordered for to-go or curbside pick-up. PASSED OUT OF SENATE 36-10. The bill is currently in the House Regulated Industries Committee.

HB 112 | COVID-19 Liability Protections: This bill would extend COVID-19 liability protections to July 14, 2022 (1 year extension). The bill has been passed out of the House and Senate Judiciary Committee. It is currently in the Senate Rules Committee with hopes to be on the floor for a vote this week.

HB 150 & SB 102 | Fuel Choice Bill: These bills would preempt local governments from banning certain fuels through building codes. The goal is to ensure restaurants will always have the choice on whether or not to use gas, electricity or other fuels inside their establishment. HB 150 has passed out of the House and Senate Regulated Industries & Utilities Committee. It is currently in Senate Rules Committee with hopes to be on the floor for a vote this week.

HB 544 | Coin Operated Machines: This bill allows establishments with coin operated machines to offer gift cards up to $50 to winners among other things. This bill has passed out of the House and is currently in the Senate Regulated industries & Utilities Committee.

GRA PSA | RESTAURANTS NEED OUR SUPPORT

US + EU AGREED TO SUSPEND ALL TARIFFS

On March 5, the United States and European Union agreed to suspend all tariffs related to the dispute over Boeing and Airbus subsidies. The four month suspension will result in the removal of tariffs on agricultural, industrial, and consumer products worth $11.5 billion including wine, whiskey, cheese, olives, nuts, and other food items from the EU. This is welcome news to the National Restaurant Association and Georgia Restaurant Association, as we have worked over the last year with other impacted trade groups to end these tariffs. Removing these tariffs is a big win for the restaurant industry and will help restaurants begin to recover amid the pandemic and resulting shutdowns. Suspension of the tariffs also marks a first step towards improving our trade partnerships with the EU and will allow the time and space to create a more permanent negotiated solution. We will continue to work with the Administration and Congress to ensure that no additional tariffs are put in place and that restaurants have access to free and open trade. Read More.