GRA Weekly

May 9, 2021

This week's newsletter is brought to you by Society Insurance.

RRF | WHAT TO EXPECT NEXT

The SBA began accepting applications for the Restaurant Revitalization Fund (RRF) on Monday, May 3. In the first two days of the RRF application window, the SBA has received:

186,200 applications from restaurants, bars, and other eligible businesses in all 50 states, Washington, D.C., and five U.S. Territories.
97,600 applications of which came from restaurants, bars, and other eligible businesses owned and controlled by women (46,400), veterans (4,200), socially and economically disadvantaged individuals (30,800), or some combination of the three (16,200).
61,700 applications from businesses with under $500,000 in annual pre-pandemic revenue, representing some of the smallest restaurants and bars in America.

The SBA is still accepting applications. For more information and how to apply, visit sba.gov/restaurants.

Regardless of where you are in the application process, please review the following reminders and helpful hints about moving forward:

What to expect next:

As outlined by Congress, the SBA will focus their reviews on the priority applications that have been submitted. Applicants who have submitted a non-priority application will find their applications remain in a Review status while the priority applications are processed during the first 21 days. Applicants in this status should not anticipate any outreach from the SBA during this period.
Following a successful application submission, all applications will first enter a stage called “IRS verification”. This process may take up to seven days and allows the SBA to validate your application submission.
If you have questions about the award calculation, see the program guide, pages 7–9.
The 4506T form is signed with your application during the e-sign process. You do not need to submit an additional 4506T.
If you are entering a state in the address section(s) use the abbreviation in capital letters (e.g., PA, TX, ME, WA, etc.).
For application support, you may submit a message using the platform inbox. For quick answers, this may be your best route.

As a reminder, per federal award program guidelines that require the same and equal information be provided to each applicant, SBA’s team members are limited on responses they can provide to applicants, including specific questions regarding RRF eligibility, potential award amount, and other detailed information. For more information, visit sba.gov/restaurants.

Restaurant Revitalization Fund Important Links.

SBA - Restaurant Revitalization Fund Website

Comprehensive website with information to help you understand the program details, how/when to apply, documents needed when applying, allowable use of funds and more.

Step-by-Step Guide

Created by our partners at the National Restaurant Association, this guide will walk you through step-by-step on how to apply.

SBA Form 3172

Restaurant Revitalization Funding Application Sample.

Frequently Asked Questions

This comprehensive document will answer your most common questions about eligibility, how to apply, documentation needed, and how much you might receive.

SBA RRF Program Guide

In-depth guide created and published by the SBA on April 17, 2021.

Form 4506-T

Request for Transcript of Tax Return, or Form 4506-T, is required to apply for an RRF grant application.

National Restaurant Association's RRF Website

Frequently updated with resources you need to know about the RRF grant process.

FORE!

CELEBRATING COCKTAILS TO-GO

On Wednesday, May 5, 2021, the GRA and restaurateurs celebrated Cinco de Mayo with Governor Brian Kemp signing SB 236 - Cocktails To-Go. Many thanks to Senator Matt Brass for sponsoring the bill and getting it passed out of the Senate and to Representative Kasey Carpenter for carrying the bill through the House. And many thanks to Governor Brian Kemp for his continued support of the restaurant community! Cheers!

Pictured above (L-R) Tray Doster (Zaxby’s), Senator Matt Brass, Alan LeBlanc (Brewed to Serve), Cindy LeBlanc (Brewed to Serve), Hav Usry (Fat Man’s Hospitality), Daniel New (GRA), Archna Becker (Bhojanic), Karen Bremer (GRA), Governor Brian Kemp, Don Balfour (Waffle House), Alexis Kinsey (Fork U Concepts), Quinton Austin (Copeland’s of New Orleans), Justin Triplett (IX Clouds & MBC Concessions), Bill Goudey (Copeland’s of New Orleans), Taylor Harper (TFH Legal), Federico Castellucci III (Castellucci Hospitality Group). Read More on Cocktails To-Go.

ENHANCE YOUR OUTDOOR DINING EXPERIENCE

Enhance Your Outdoor Dining Experience.

As the temperatures continue to rise in Georgia, providing customers an al fresco dining experience is becoming even more appealing. For many restaurants, outdoor dining can double or even triple the amount of space offered to guests. While this is enticing for both restaurant staff and customers, providing a good outdoor dining experience is not as simple as setting up tables and chairs outside. It takes careful planning and training to enhance the guest experience. Here are some helpful tips to consider throughout the planning process. Read More.

FEDERAL LABOR UPDATES

OSHA Emergency Temporary Standard (ETS).

The U.S. Department of Labor sent the draft ETS to the White House Office of Information and Regulatory Affairs (OIRA) earlier this week. Neither DOL/OSHA nor OIRA have made the content or substance of the ETS public nor have they provided a timeline on its release. However, Shannon Meade, Vice President of Public Policy and Legal Advocacy, previously communicated our general concerns about an ETS with DOL/OSHA and reiterated those concerns again earlier this week during a meeting with DOL policy staff. Once the ETS is finally issued it will be in effect and will be considered the proposal for a permanent regulation and stakeholders will be invited to file comments.

White House Executive Order issued mandating $15 minimum wage for employees of federal contractors.

On April 27, President Biden issued an executive order increasing the minimum wage for employees working on federal contracts to $15/hour and be indexed to the consumer price index for annual adjustments. The new rate will apply to new contracts as of January 30, 2022 and will be applied to existing contracts when they are extended. The current wage rate for workers of federal contractors is $10.95, which was increased due to indexing from $10.10 as set by President Obama. Important to note, the new EO also phases out the tip credit for tipped workers by 2024. Rulemakings by the DOL Wage and Hour Division will follow to implement the new wage and contract language associated with it. As to whether the new EO is applicable to restaurants who hold federal contracts, Association staff solicited an outside legal opinion which advises it probably will apply because the DOL has been taking the position since the Obama Administration that concessionaires on federal property are government contractors subject to the Service Contract Act, even though they are paying the government for the right to conduct business on federal property rather than receiving payments from the government to perform services. Outside counsel advises that this is an issue that a party might win if willing to take it to litigation, but no business that relies heavily on government contracts wants to risk debarment over something like this, so people go along with it.

DOL to delay remainder of Trump Administration Tip Credit final rule.

On Wednesday, the DOL announced it will be delaying the remaining parts of the Trump Administration’s final rule on tipped workers that deals with monetary penalties and side-work, known as the so-called “80/20 Rule” through December 31, 2021. The Association previously submitted comments supporting the final rule and opposing the delay arguing that employers need regulatory certainty and predictability to achieve compliance and navigate continuing recovery efforts. The delay will allow the Department additional time to either rewrite and/or revoke these provisions of the final rule. When/if a new proposed rulemaking is issued, the Association plans to respond. Association staff met with DOL earlier this week to reaffirm our support for the final rulemaking, communicating the tremendous confusion and difficulties associated with the former Obama 80/20 rule.

White House Creates “Union Task Force.”

On April 26, the White House announced that President Biden would issue an executive order establishing the White House Task Force on Worker Organizing and Empowerment, which “will be dedicated to mobilizing the federal government’s policies, programs, and practices to empower workers to organize and successfully bargain with their employers.” The task force will be led by Vice President Kamala Harris and Vice-Chaired by Secretary of Labor Marty Walsh and include “more than twenty cabinet members and heads of other federal agencies.” The task force is charged with delivering a set of recommendations within 180 days on two issues: first, how existing policies, programs, and practices can be used to promote worker organizing and collective bargaining in the federal government and second, where new policies are needed to achieve the task force’s mission and what the associated regulatory and statutory changes are needed to that end. The task force will have four stated goals: 1) Lead by example within the federal government; 2) facilitate worker organizing across the country; 3) increase worker power in underserved communities; and 4) increase union membership. At this time it is unknown what the force or significance of the task force will be, i.e., whether it’s more for appearance or propaganda purposes by unions or whether significant recommendations and actions will result.

Federal Paid Family Leave bill introduced.

House Ways and Means Committee Chairman Richard Neal (D-MA) introduced a paid leave bill, as part of a larger legislative package, Building an Economy for Families Act, that would provide universal paid family and medical leave for all U.S. workers with no preemption of state/local leave laws. Specifically, it would provide reimbursement to an employee who takes leave for a covered reason (generally the FMLA but expanded to cover more family members and more triggering events). If a state has a program that is grandfathered, i.e. left in place, it can get some of the costs of the benefits paid out reimbursed. Similarly, employers who provide leave under their own programs would be eligible for partial reimbursement of their costs for providing leave. There is no dedicated funding mechanism. The costs of the bill are covered using appropriated funds from the general treasury. President Biden also included a paid family leave benefit in his American Families Plan, but very few details have been made available at this time.

RESTAURANTS NEED A SEAT AT THE TABLE

"Restaurants Need a Seat at the Table" in Nation's Recovery.

On Wednesday, President Joe Biden made remarks on the newly launched Restaurant Revitalization Fund (RRF), saying that "restaurants need a seat at the table" in our nation's economic recovery. In the first two days after the application opened for the $28.6 billion in funding, 186,200 restaurants, bars, and other eligible businesses applied. Watch Here.

The White House released a Fact Sheet: The Biden/Harris Administration Supports Hard-hit Restaurants and Bars, which outlines the goals of the RRF program. The 21-day priority period is for businesses owned by women, veterans, or people from historically disadvantaged backgrounds. An additional $9.5 billion is set aside for the smallest restaurants and bars – including millions of dollars for restaurants, bars, and food trucks with under $50,000 in revenue. Biden described restaurants as not only a major driver of our economy but also "woven into the fabric of our communities."

IMPORTANT TAX CREDITS

ERTC for Small Business Expanded to Include All of 2021.

The American Rescue Plan Act extends the Employee Retention Tax Credit to Dec. 31. While there hasn’t been a lot of good news for restaurants during the pandemic, the American Rescue Plan Act (ARPA) contains several helpful measures, especially for smaller businesses. One bright spot is the extension of the Employee Retention Tax Credit (ERTC) from June 30 of this year to December 31, 2021. 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 employee. Read More.

A Look at the ERTC in the Second Half of 2021.

If you missed this webinar, hosted by the National Restaurant Association, you can view the recording here.

Quick facts:

The American Rescue Plan Act applies the Employee Retention Tax Credit to all four quarters of 2021.
That’s $7K per employee per quarter, or $28K total per employee in tax credits on the table for eligible restaurateurs this year.
Our new Understanding the ERTC Fact Sheet and this webinar recording fill in the details.

COVID VACCINE

GA DPH Will Come to Your Restaurant to Provide Vaccines for Your Employees.

In an effort to support the restaurant community's recovery from COVID-19, GA DPH is willing to come to your restaurant with a team of vaccine specialists to provide free vaccines and information for your employees. If you're interested in signing up, please email us at info@garestaurants.org.

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. Link to register: www.georgiasbdc.org/restaurant-reset

REST IN PEACE

Restaurant owner’s storm-related death leaves ‘a dark cloud over Douglasville’.

AJC - For 50 years, Scot Hudson’s place has been Douglasville’s go-to spot for a barbecue sandwich, fries and sweet tea. The food at Hudson’s Hickory House brought folks in and Hudson’s generosity and service to the community kept them coming back. Over time, customers became friends. “The barbecue was good, but the owners were much better,” said Jeff Morris, among them. Monday morning, Scot Hudson was on his way to the Veterans Memorial Highway restaurant when a tree fell on his SUV during stormy weather, investigators say. The impact killed Hudson, who was 60. Read More.