On May 20, the U.S. Senate failed to advance the Small Business COVID Relief Act of 2022 (S. 4008), ending the possibility of replenishing the Restaurant Revitalization Fund (RRF).
The American Rescue Plan established the RRF with $28.6 billion that Senate Majority Leader Charles Schumer (D-NY) called a down payment to restaurants. More than 278,000 restaurants applied for funds from the RRF and the program’s initial round of funding, which operators used primarily to pay off debt and meet payroll, was a resounding success. According to Association research, more than 900,000 restaurant jobs were saved, and 96% of recipients report that the funds helped their establishments remain open. However, 177,000 establishments were left without aid.
The $48 billion Small Business COVID Relief Act of 2022 (S. 4008), introduced by Sens. Ben Cardin (D-MD) and Roger Wicker (R-MS), included $40 billion for RRF replenishment to help fund the establishments left out of the RFF’s initial funding. The House passed the Relief for Restaurants and other Hard Hit Small Businesses Act of 2022 (H.R. 3807), which included $42 billion to replenish the RRF, on April 7. Both political parties agreed that the RRF should be replenished but couldn’t reach a consensus on how to pay for it.
