Restaurant Revitalization Fund – Act Now – the Portal is Open

The American Rescue Plan Act put in place the Restaurant Revitalization Fund (RRF) to help restaurants and other eligible businesses with funding. The Small Business Administration (SBA) application portal opens today, Friday, April 30, 2021 at 9 am. Applications will be available on Monday, May 3, 2021 at noon.

If you have been in business from January 2020 through March 2021, start pulling the information together now so you can apply when the portal application opens. Below, we have pulled some of the important items to know from SBA.gov .

Who is Eligible

Eligible entities who have experienced pandemic-related revenue loss include:

  • Restaurants
  • Food stands, food trucks, food carts
  • Caterers
  • Bars, saloons, lounges, taverns
  • Snack and nonalcoholic beverage bars
  • Bakeries (onsite sales to the public comprise at least 33% of gross receipts)
  • Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts)
  • Breweries and/or microbreweries (onsite sales to the public comprise at least 33% of gross receipts)
  • Wineries and distilleries (onsite sales to the public comprise at least 33% of gross receipts)
  • Inns (onsite sales of food and beverage to the public comprise at least 33% of gross receipts)
  • Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products

Even those that were just starting out in Q1 of 2020, and unable to prove loss of gross receipts, are still eligible for assistance. This is great, as mostly everything offered previously has been weighted on the previous revenues and incurred loss. Instead of prior year proof of receipts, they will take into account the business plan/model for the newly opened business in 2020.

How to Apply

Check out the RRF page, here, on the SBA website for application process. You have 2 options, you can apply through your SBA-recognized Point of Sale system or through the online application portal. Use this link to access the sample application, SBA Form 3172, and prepare what will be needed to apply. You can also access this RRF guide to help you through the process.

Additional Documentation Needed to Apply

Additional documentation required:

  • Verification for Tax Information: IRS Form 4506-T, completed and signed by Applicant. Completion of this form digitally on the SBA platform will satisfy this requirement.
  • Gross Receipts Documentation: Any of the following documents demonstrating gross receipts and, if applicable, eligible expenses
    • Business tax returns (IRS Form 1120 or IRS 1120-S)
    • IRS Forms 1040 Schedule C; IRS Forms 1040 Schedule F
    • For a partnership: partnership’s IRS Form 1065 (including K-1s)
    • Bank statements
    • Externally or internally prepared financial statements such as Income Statements or Profit and Loss Statements
    • Point of sale report(s), including IRS Form 1099-K

For applicants that are a brewpub, tasting room, taproom, brewery, winery, distillery, or bakery:

  • Documents evidencing that onsite sales to the public comprise at least 33.00% of gross receipts for 2019, which may include Tax and Trade Bureau (TTB) Forms 5130.9 or TTB. For businesses who opened in 2020, the Applicant’s original business model should have contemplated at least 33.00% of gross receipts in onsite sales to the public. 

For applicants that are an inn:

  • Documents evidencing that onsite sales of food and beverage to the public comprise at least 33.00% of gross receipts for 2019.

Other Important Items to Highlight

For businesses who opened in 2020, the Applicant’s original business model should have contemplated at least 33.00% of gross receipts in onsite sales to the public.

The PPP loan dollars that you previously applied for and received will be deducted from the gross receipts calculation. So as long as your 2019 gross receipts exceed what you received in gross receipts for 2020 and the funds received under the PPP loan in 2020 you will be able to apply for relief through this fund.

EIDL loan amounts received are not included in this application calculation consideration.

Allowable Use of the Funds

  • Business payroll costs (including sick leave)
  • Payments on any business mortgage obligation
  • Business rent payments (note: this does not include prepayment of rent)
  • Business debt service (both principal and interest; note: this does not include any prepayment of principal or interest)
  • Business utility payments
  • Business maintenance expenses
  • Construction of outdoor seating
  • Business supplies (including protective equipment and cleaning materials)
  • Business food and beverage expenses (including raw materials)
  • Covered supplier costs
  • Business operating expenses

We, at Libertate Insurance Services, wish you luck in this process.

Interesting Tidbits for Your Week!

Expecting the Unexpected for Your Small Business. Common insurance types for small businesses.

For better or worse is generally a term related to marriage vows, but in business its just as important! Luckily for business owners there are ways to mitigate the risks associated with the “worse.” Pie Insurance recently released an article covering the types of common insurance for small businesses as well as some not so common options like a business owner’s policy (BOP); I thought it was worth sharing.

A Business Owner’s policy can include professional liability insurance (errors and omissions insurance), a commercial umbrella policy, employment practices liability insurance, directors and offices liability insurance and terrorism insurance. You can check out the full article here. The key to insurance is never needing it, but having it in place when you do. It can make the difference in saving your company when the unexpected happens. Contact us at Libertate Insurance, we can help.

1st Qtr 2021 Small Business Data

NAPEO issued small business snapshot data on Q1 of 2021. Check out the full review here.

High points from the data include:

Percentage change of Daily Small Business Revenue from January 2020 to January 2021 showing 50% decrease in revenues at April 1, 2020 with slowing increase about 31% overall increase at January 1, 2021. Small businesses are slowly pulling back.

Job losses in the United States are reported at 9.6 million; with the expected hardest hit industry of Leisure and Hospitality accounting for nearly 40% of all loss reported.

On a state by state analysis the numbers are showing more increase than decrease with the average unemployment rate reporting at 5.6% at the close of February 2021. (US Bureau of Labor Statistics). Overall jobless rates are down in 23 states as of March and higher in only 4.

US Small Business Administration (SBA) Updates

If your business previously received the Economic Injury Disaster Loan (EIDL) Advance from the SBA for less than $10,000, the SBA is allowing applicants to re-apply to receive the full amount of the advance up to $10,000.

If your business was also a recipient of the EIDL these loans were previously limited to six months of economic injury up to a maximum of $150,000; the SBA has announced a change that will allow loan limits up to 24 months of economic injury with a maximum loan amount of $500,000. Be advised and proceed with caution, as the SBA takes security interest in the business assets for loan amounts over $25,000.

The SBA is also sending out emails to the EIDL loan recipients extending the first payment due on the EIDL loans to 2022 for loans issued in 2020. The first payment due date is extended 24 months from the date on the note. They have indicated that 2021 loans will have initial payments due 18 months from the note date. Interest continues to accrue during the deferment period.

Follow these instructions if you wish to request a loan increase:

  • Send email to CovidEIDLIncreaseRequests@sba.gov
  • Use subject line “EIDL Increase Request for [insert your 10-digit application number]”
  • Be sure to include in the body of your email identifying information for your current loan including application number, loan number, business name, business address, business owner name(s), and phone number.

Important: Do not include any financial documents or tax records with your initial request. You will receive a follow up email notification if we need additional documents.

You can check out all of the updates for offerings available from the SBA here.

History of Workers’ Compensation

AND last but not least, for those insurance nerds, another very interesting release from Pie Insurance is a history of workers’ compensation insurance. Covering where the laws stand today, where it started and how it has changed the benefits to workers in the United States. Interesting and educational read, check it out here.

Be sure to check out our continual updates here, on PEO Compass, regarding Florida’s House Bill 1305 and its impact on workers’ compensation and the PEO industry.

Post Update! Overview of the Passed $1.9 Trillion Stimulus, the American Rescue Plan

We posted earlier this week the highlights on the Proposed Stimulus Package, we just received updates on what was passed! Check out the overview below.

The $1.9 trillion relief bill, known as the American Rescue Plan, has passed Congress and will head to the President for a signature. Highlights of the bill include extended unemployment benefits, direct checks to individuals and more.

While some of the bill was changed during its time in the Senate, it’s largely similar to the initial version passed by the House. However, some key provisions, such as a higher minimum wage, were scrapped amid efforts to pass the bill swiftly.

This article outlines the most relevant provisions included in the bill.

Small Business Assistance

The bill invests billions toward small business assistance. Here is the current funding breakdown:

  • Economic Injury Disaster Loan program: $15 billion
  • New grant program for bars and restaurants, specifically: $28 billion
  • Paycheck Protection Program: $7.25 billion

Direct Payments

Just like the two other COVID-19 relief bills passed during the pandemic, this version also features direct payments to Americans. This time around, eligible recipients can expect $1,400 per person ($2,800 for couples), including adult dependentsa family of four could receive up to $5,600.

However, payment parameters are stricter this time around than with the previous direct payment. The full amount will go to individuals earning under $75,000 (or $150,000 for couples), with payments cut off entirely for individuals earning over $80,000 (or $160,000 for couples). Individuals earning an amount between those figures will receive a reduced sum.

Unemployment Aid

The bill extends two previously established pandemic unemployment assistance efforts: the Pandemic Unemployment Assistance Program and the Pandemic Emergency Unemployment Compensation program. Unemployed gig workers, freelancers, contractors and others who previously qualified for aid will continue to be eligible under these programs. The financial assistance provided by these two programs is currently set to expire in mid-March, which pressured legislators to act quickly.

The bill also provides for enhanced unemployment assistance payments of $300 per week. Under the bill, these programs and their financial aid are extended through Sept. 6.

Housing Assistance

The bill sets aside billions in financial aid to homeowners and renters. Here is the funding breakdown:

  • Aid for emergency rental assistance: $22 billion
  • Aid for mortgages, utilities and property taxes: $10 billion
  • Aid to states and localities to help individuals at risk of becoming homeless: $5 billion

Emergency Paid Leave

The Families First Coronavirus Response Act (FFCRA), signed into law on March 18, 2020, required certain employers to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. That requirement expired Dec. 31, 2020.

The American Rescue Plan maintains the status quo, in that it does not require employers to offer leave under the FFCRA framework. However, the bill does provide tax credits for employers that voluntarily provide leave under the FFCRA framework through the end of September 2021.

Aid to Schools and Child Care

A significant portion of the relief bill involves aid to states, including schools and child care facilities:

  • Aid for getting K-12 schools ready for in-person learning: $125 billion
    • Money may be used for purchasing protective equipment, improving ventilation systems and hiring support staff, among other things. However, 20% of the money schools receive must be used to address pandemic learning loss—for example, extending learning time into the summer.
    • Aid carved out specifically for private schools: $2.75 billion
  • Aid for colleges: $40 billion
    • Institutions will be required to spend at least 50% of their allocated funds on emergency financial aid grants to students.
  • Child care provider assistance: $39 billion
    • Funds may be used for payroll, rent, protective equipment and other expenses.

Tax Credits

The relief bill provides an overhaul of the child tax credit for the 2021 tax year. The bill increases the amount of the credit to $3,000 for each child under the age of 18 and $3,600 for children under the age of 6. The credit will also become fully refundable, meaning low-income individuals would receive the benefit.

The bill also expands the earned income tax credit for individuals without children. The maximum credit will be nearly tripled, and eligibility will be expanded as well.

Health Insurance

The bill subsidizes private health insurance premiums for unemployed workers through the Consolidated Omnibus Budget Reconciliation Act (COBRA). The provision allows individuals eligible for COBRA insurance coverage to maintain their employer-sponsored coverage after losing employment without having to pay any portion of the premiums through the end of September 2021.

Additionally, the bill invests nearly $35 billion in premium subsidy increases for those who buy coverage on the ACA Marketplace. The bill increases the subsidies provided to currently eligible individuals, and removes the 400% federal poverty level cap (equal to approximately $51,000 for an individual) on subsidy eligibility.

Aid to states, local governments, tribes and territories

The bill provides billions in financial assistance to states, local governments, tribes and territories. Here is the current funding breakdown:

  • Aid to state and local governments: $325.5 billion
  • Aid to tribes and territories: $24.5 billion
  • Creation of the Coronavirus Capital Projects Fund, to carry out capital projects directly enabling work, education and health monitoring: $10 billion

What’s NOT in the Bill

A minimum wage hike to $15 per hour—one of the most discussed provisions from the initial bill—has been removed from the final version due to strict rules governing budget bills in the Senate. Some Democrats have suggested this provision may be considered as a standalone bill, but any movement on that front remains to be seen.

Additionally, the bill does not include an extension of the eviction moratorium, which is set to expire on March 31, or an expansion of mandated paid sick and family and medical leave. While neither were included in the original House bill, these were popular provisions contained within one of the previous bills.

Thank you for being part of our PEO Compass information outlet. Contact us at Libertate Insurance for your PEO and Workers’ Compensation needs.