Bill Overview
Title: Restaurant Revitalization Fund Replenishment Act of 2021
Description: This bill addresses support for restaurants, arts and entertainment venues, and small businesses impacted by the COVID-19 pandemic. The bill provides an additional $42 billion in FY2021 for the Restaurant Revitalization Fund and gives priority to previous applicants who have not received a grant. The Small Business Administration (SBA) must provide to applicants an explanation for denied applications, establish a reconsideration process for denied applications, and institute an audit and oversight plan with respect to grant recipients. Additionally, the bill establishes the Hard Hit Industries Award Program for small businesses that suffered a pandemic-related revenue loss of 40% or more. Aggregate grant amounts are capped at $1 million. Funds may be used for expenses including mortgage, rent, and utility payments and payroll. SBA must prioritize entities that have experienced significant pandemic-related revenue loss, with first priority going to those that experienced a loss of at least 80%, and second priority going to those that experienced a loss of at least 60%. Finally, the bill extends to March 11, 2023 (or a later date as determined by the SBA), the time frame during which Shuttered Venue Operators Grant recipients may use grant funds to cover their expenses.
Sponsors: Rep. Blumenauer, Earl [D-OR-3]
Target Audience
Population: Individuals working in restaurants, arts, entertainment, and other small businesses impacted by the COVID-19 pandemic
Estimated Size: 4000000
- The bill aims to provide financial support to restaurants, arts and entertainment venues, and other small businesses affected by the COVID-19 pandemic.
- The Restaurant Revitalization Fund targets restaurants that were previous applicants and did not receive a grant, indicating they had already experienced financial strains due to the pandemic.
- The Hard Hit Industries Award Program reaches out to small businesses across various sectors that faced significant revenue losses, implying they had a drastic pandemic-related impact.
- The inclusion of the Shuttered Venue Operators Grant is specific to venues like theaters and live performance spaces, which were heavily impacted by gathering restrictions during the pandemic.
- The pandemic's effects were global, but the bill itself is legislated by the U.S. government, suggesting a primary impact on U.S. businesses.
Reasoning
- The Relief for Restaurants and other Hard Hit Small Businesses Act of 2022 targets individuals heavily impacted by COVID-19, such as restaurant workers and small business owners facing revenue loss.
- Due to its industry-specific focus, it impacts a segment of the population directly involved in food services, arts, and entertainment.
- With a budget cap of $43 billion over 10 years, the policy is limited in scope but provides significant aid to targeted sectors, distributing support unevenly based on loss severity.
- Given the significant number of small businesses in the U.S., prioritization criteria (like revenue loss percentage) is crucial for effective distribution.
- Since the pandemic scenario varies across regions, impact per person may differ, with some seeing notable benefits and others only marginal improvements.
- The 20-year score simulates the long-term stability or resurgence of those businesses with and without the policy, reflecting broader economic recoveries.
Simulated Interviews
Restaurant Owner (New York City, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- The additional funding could save my business. It addresses many issues we have faced during the pandemic.
- Clear communication and a chance to reconsider if my application is denied is something I appreciate.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 3 |
| Year 5 | 8 | 2 |
| Year 10 | 8 | 1 |
| Year 20 | 9 | 1 |
Event Planner (Chicago, IL)
Age: 34 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- If the funds for venues are extended, it might help stabilize my employment and event planning opportunities.
- This policy provides crucial support but needs to reach those who need it most.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 6 |
Cafe Manager (Austin, TX)
Age: 29 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 9/20
Statement of Opinion:
- It’s a relief to see this focus on cafes as we are hit hard but usually overlooked compared to larger restaurants.
- The funding should also provide technical assistance for grant applications.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Theatre Artistic Director (Portland, OR)
Age: 57 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Continuing grant eligibility could ensure the theatre survives beyond immediate recovery.
- Support for arts venues reinforces community cultural health.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 3 |
| Year 10 | 8 | 3 |
| Year 20 | 8 | 2 |
Restaurant Chef (Miami, FL)
Age: 39 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- My job security is highly dependent on the restaurant’s economic relief.
- I support the emphasis on drastic revenue loss first, but there’s been little for staff like me in this policy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 7 | 4 |
Owner of an Art Gallery (Los Angeles, CA)
Age: 50 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- Commercial rent support is a life-saver for high-cost areas like mine.
- The policy should simplify application processes for small business owners.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 7 | 4 |
Owner of a Dance Studio (Denver, CO)
Age: 41 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- Finally, some prioritization for businesses neglected in the first round of funding.
- It's not just our business; it's a community hub that needs help to reopen.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 3 |
| Year 3 | 6 | 3 |
| Year 5 | 7 | 2 |
| Year 10 | 8 | 2 |
| Year 20 | 9 | 1 |
Food Truck Owner (Atlanta, GA)
Age: 33 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 11/20
Statement of Opinion:
- Getting back to pre-pandemic operations would be faster with this new wave of funding.
- Flexibility of use (rent, utilities, etc.) is a practical aspect of the grants.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Owner of a Jazz Bar (San Francisco, CA)
Age: 65 | Gender: male
Wellbeing Before Policy: 3
Duration of Impact: 15.0 years
Commonness: 4/20
Statement of Opinion:
- Struggling with closure, and now there's hope we might open again.
- The policy is well intentioned but face challenges from bureaucracy in execution.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 3 |
| Year 2 | 5 | 2 |
| Year 3 | 6 | 2 |
| Year 5 | 6 | 1 |
| Year 10 | 7 | 1 |
| Year 20 | 8 | 1 |
Independent Movie Theater Manager (Boston, MA)
Age: 48 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Critical for us to remain competitive and recover in 2023.
- Extending funding use means we can plan better for the future.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 3 |
| Year 5 | 7 | 3 |
| Year 10 | 7 | 2 |
| Year 20 | 7 | 2 |
Cost Estimates
Year 1: $43000000000 (Low: $42000000000, High: $44000000000)
Year 2: $0 (Low: $0, High: $0)
Year 3: $0 (Low: $0, High: $0)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- Administrative costs and oversight for the Restaurant Revitalization Fund and Hard Hit Industries Award Program could be substantial, affecting net cost.
- Prioritization of previous applicants and businesses experiencing significant revenue losses should be transparent and equitable to maximize impact.
- The effective and timely distribution of funds is crucial to provide meaningful immediate relief.