Restaurant Recovery Update 4.9.21
Do you have Restaurant Revitalization Fund questions? We have the answers!

Click here to explore the new FAQs for critical updates about applications, eligibility, figuring out grant amounts, and more common restaurant operator questions.

Unexpected Unemployment Insurance Increases
We write today regarding a situation that some of you may already be aware of, but want to make sure that everybody hears about it and prepares for any potential impact.
As we know, both the Governor and the Legislature took action to address the increase in the rate schedule for UI. However, as rates were sent out this week, many operators and other businesses have seen significant increases in their UI obligations.
The increase is attributed to an exponential rise in what is called the solvency rate. According to forms issued by DUA:
The solvency rate used in the calculation of each company's UI experience rate for 2021 is 9.23% and increase from last year's rate of 0.58%
While a moderate increase in UI was expected for this year, this rate increase is exponentially more than anybody would have thought. The solvency rate has very rarely been brought up by anybody in government over the last 6 months. Historically, the solvency rate hovers between .5% - 2%. Prior to a communication sent out by DUA this week, nobody had mentioned publicly or privately the new 9.23% rate.
We have been engaged with The Governor's office, members of the Legislature, and other business stakeholders, and collecting data from different members to gauge the true impact of this increase. Many in the legislature have expressed shock at the increases that they are hearing from operators in their district.
It is unclear what potential solutions are available to us in the short-term. We are fully engaged with trying to address this unexpected situation.
We will keep you updated as we learn more.
Guidance Issued for 100% Business Meal/Beverage Deductibility,
The IRS and Treasury Department issued guidance yesterday allowing a 100% business deduction for food or beverages purchased from restaurants, from January 1, 2021 to December 31, 2022. For clarity, the term “restaurant” means a business that prepares and sells food or beverages to retail customers for immediate consumption, regardless of whether the food or beverages are consumed on the business’s premises.
Full guidance can be found here.
Webinar - ServSafe & ServSuccess: Protecting Brands with Trusted Training Solutions
In case you missed the webinar earlier this week, you can watch the recording here.

Massachusetts Restaurant Association
160 East Main Street, Suite 2, Westborough, MA 01581
Phone: (508) 303-9905