GRA Weekly

August 11, 2022

This week's newsletter is brought to you by GRA Corporate Partner, UnitedHealthcare.

SAVANNAH KITCHEN CABINET MEETING

Upcoming Kitchen Cabinet Meeting!

The Georgia Restaurant Association looks forward to meeting with Congressman Buddy Carter in Savannah on Wednesday, August 24. To get more details about the Savannah Kitchen Cabinet Meeting or want to host a meeting in your area, reach out to our Director of Advocacy Daniel New.

GRACE US WITH YOUR PRESENCE!

GRACE us with Your Presence!

Our 14th Annual GRACE Awards gala is an event you do not want to miss! Join us for an evening filled with amazing food, refreshing drinks and mingling with the industry's finest. Interested in sponsorship opportunities, please contact Sarah Thorson.

September 27 | Georgia Aquarium

US WAGE & HOUR + FLSA UPDATE

US Wage & Hour + FLSA | Break Time for Nursing Mothers

Federal law requires employers to provide reasonable break time for an employee to express breast milk for her nursing child for one year after the child's birth each time such employee has need to express the milk (Section 7 of the FLSA). Employers are also required to provide a place, other than a bathroom, that is shielded from view and free from intrusion from coworkers and the public, which may be used by an employee to express breast milk. Learn more.

2022 DEI SURVEY REPORT

2022 DEI Survey Report

There’s a gap between how hospitality enterprises view their diversity and inclusion policies and how their employees actually experience them. This new diversity, equity, and inclusion (DEI) report measures the awareness and perceived effectiveness of DEI practices among employers and employees in the restaurant industry.

This research, conducted in collaboration between the National Restaurant Association, the National Restaurant Association Educational Foundation (NRAEF), the Multicultural Foodservice & Hospitality Alliance (MFHA), and Cornell University Nolan School of Hotel Administration, measured the DEI environment in the restaurant and foodservice industry to understand how DEI strategies impact foodservice workers’ job satisfaction.

This report reinforces the critical importance of effective DEI policies in driving employee engagement and retention in the restaurant industry.

Download this free report today.

LOCAL UPDATE: CITY OF GRIFFIN

Local Update: City of Griffin

On Tuesday, August 9, the City of Griffin Commissioners passed an ordinance making the following changes to their alcohol code:

Expands Special Entertainment District to include everything between South 10th Street to South 3rd Street (inside of West and East Popular Street) and North 10th Street to South 3rd (inside of East and West Broad Street);
Expands the "Go-Cup" hours (12:00 p.m. to Midnight) between Friday to Sunday and on holidays recognized by the City. The "Go-Cup" hours from Monday through Thursday remain unchanged from their original version as adopted by the Board of Commissioners.

You can read the complete ordinance and see the new Special Entertainment District map HERE.

GA STATE INCOME TAX UPDATE

Alert: Georgia Pass-Through Entities Now Allowed to Deduct State Income Tax at the Entity Level

Last year, Georgia Governor Brian Kemp signed into law H.B. 149, which allows pass-through entities in Georgia to pay state income taxes at the entity level on behalf of its owners and claim a full deduction on their federal income tax return. This election will be available beginning with the 2022 tax year.

Read more for details on how these regulations may impact Georgia restaurant owners.

LOCAL GRANT + LOAN PROGRAMS

Fulton County Small Business Recovery Loan Program 2.0 | New Flexible Loans Available

Select Fulton, Fulton’s economic development arm, has partnered with Access to Capital for Entrepreneurs (ACE) to put together a $3.9 million fund to small businesses who experienced revenue losses due to the COVID-19 pandemic. Entrepreneurs (ACE), is expanding support for the Fulton County business community as the impact of the COVID-19 continues to be felt. We are now offering more FLEXIBLE loans for small business owners in Fulton County, excluding those located inside the City of Atlanta.

Major changes include:

new eligible use of funds for investment;
expanded loan amounts for smaller businesses and;
longer repayment terms.

The Fulton County Recovery Loan Program offers up to $100,000 in loans for qualifying Fulton County small businesses. Participating businesses can also access Business Advisory Services specifically designed to assist and support loan clients to strengthen their operations, achieve growth, and improve organizational sustainability. For more information.

City of Atlanta Announces $3.5M Grant Program

Earlier this week, Atlanta Mayor Andre Dickens announced a $3.5M grant program to support small businesses and property owners in Atlanta. Through the Commercial Property Improvement Grant program, small business owners are eligible to apply for grants of up to $50,000 for exterior and interior enhancements to their business.

This program is the second initiative that United Way of Greater Atlanta and Invest Atlanta have rolled out as a part of the Atlanta Open for Business Fund, supported by Wells Fargo. Learn more.

Funds still available | City of Norcross, GA's American Rescue Plan Act (ARPA) Small Business Grant Program

The program’s purpose is to offer financial assistance to small businesses located within Norcross city limits who have been negatively impacted by COVID-19, stabilize, and sustain Norcross businesses, and ensure they are able to retain employees.

Grants may be used to pay:

Rent, lease or mortgage costs, Utility bills, Payroll, Business-related insurance, Inventory expenses including covering any loss of inventory, Other operating expenses

The grant application deadline is August 21, 2022 at 11:59PM. Learn more and Apply.

FEDERAL UPDATES

The deal with SBA and RRF money

The Association remains cautiously optimistic that the Small Business Administration will disperse remaining money in the Restaurant Revitalization Fund. Although the agency said last week that it will release leftover funds, it has not specified when or how the money would be distributed. The Association will continue to monitor RRF activity and alert restaurants to any new developments.

What this means for restaurants: It’s possible that restaurants that were promised but never received RRF grants could soon get some relief as SBA received $56M in grants that were returned by recipients, and set aside $24M for litigation that was unauthorized by Congress. Following a July Government Accountability Office report that revealed the SBA was sitting on $180M in RRF money, the Association urged SBA Administrator Guzman to disburse all remaining funds in a fair and timely manner.

No tax hikes for majority of restaurants in Senate inflation bill

The $733B Inflation Reduction Act, which passed the Senate on Sunday and now heads to the House, contains some tax increase provisions, but will not raise taxes on a majority of restaurants. For more than a year, the Association successfully advocated to keep 4 key tax increases out of the bill, including a reduction to the qualified business income deduction known as Section 199A, expansion of the Net Investment Income Tax (NITT), increase to the corporate tax rate from 21% to 26.5%, and repeal of the stepped-up basis. Read our statement.

What this means for restaurants: Only restaurants with more than $1B in financial statement income and that pay less than a 15% effective tax rate will be subject to a new corporate alternative minimum tax (CAMT) beginning in 2023. Additionally, publicly-traded companies will be subject to a 1% excise tax for stock buybacks beginning in 2023.