[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 255 Introduced in Senate (IS)]
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117th CONGRESS
1st Session
S. 255
To establish a $120,000,000,000 Restaurant Revitalization Fund to
provide structured relief to food service or drinking establishments,
and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 4, 2021
Mr. Wicker (for himself and Ms. Sinema) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To establish a $120,000,000,000 Restaurant Revitalization Fund to
provide structured relief to food service or drinking establishments,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Real Economic Support That
Acknowledges Unique Restaurant Assistance Needed To Survive Act of
2021'' or the ``RESTAURANTS Act of 2021''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Affiliated business.--The term ``affiliated business''
means a business in which an eligible entity has an equity or
right to profit distributions of not less than 50 percent, or
in which an eligible entity has the contractual authority to
control the direction of the business, provided that such
affiliation shall be determined as of any arrangements or
agreements in existence as of March 13, 2020.
(2) Covered period.--The term ``covered period'' means the
period beginning on February 15, 2020 and ending on the date
that is 8 months after the date of enactment of this Act.
(3) Eligible entity.--The term ``eligible entity''--
(A) means a restaurant, food stand, food truck,
food cart, caterer, saloon, inn, tavern, bar, lounge,
brewpub, tasting room, taproom, licensed facility or
premise of a beverage alcohol producer where the public
may taste, sample, or purchase products, or other
similar place of business in which the public or
patrons assemble for the primary purpose of being
served food or drink;
(B) includes an entity described in subparagraph
(A) that is located in an airport terminal; and
(C) does not include an entity described in
subparagraph (A) that--
(i) is part of a State or local government
facility, not including an airport; or
(ii) as of March 13, 2020, owns or operates
(together with any affiliated business) more
than 20 locations, regardless of whether those
locations do business under the same or
multiple names.
(4) Fund.--The term ``Fund'' means the Restaurant
Revitalization Fund established under section 3.
(5) Payroll costs.--The term ``payroll costs'' has the
meaning given the term in section 7(a)(36)(A) of the Small
Business Act (15 U.S.C. 636(a)(36)(A)).
(6) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
SEC. 3. RESTAURANT REVITALIZATION FUND.
(a) In General.--There is established in the Treasury of the United
States a fund to be known as the Restaurant Revitalization Fund.
(b) Appropriations.--
(1) In general.--There is appropriated to the Fund, out of
amounts in the Treasury not otherwise appropriated,
$120,000,000,000, to remain available until the date that is 8
months after the date of enactment of this Act.
(2) Remainder to treasury.--Any amounts remaining in the
Fund after the date that is 8 months after the date of
enactment of this Act shall be deposited in the general fund of
the Treasury.
(c) Use of Funds.--The Secretary shall use amounts in the Fund to
make grants described in section 4.
SEC. 4. RESTAURANT REVITALIZATION GRANTS.
(a) In General.--The Secretary shall award grants to eligible
entities in the order in which applications are received by the
Secretary.
(b) Registration.--The Secretary shall register each grant awarded
under this section using the employer identification number of the
eligible entity.
(c) Application.--
(1) In general.--An eligible entity desiring a grant under
this section shall submit to the Secretary an application at
such time, in such manner, and containing such information as
the Secretary may require.
(2) Certification.--An eligible entity applying for a grant
under this section shall make a good faith certification--
(A) that the uncertainty of current economic
conditions makes necessary the grant request to support
the ongoing operations of the eligible entity;
(B) acknowledging that funds will be used to retain
workers and maintain payroll or for other allowable
expenses described in subsection (e) and not for any
other purposes;
(C) that the eligible entity does not have an
application pending for a grant under paragraph (36) or
(37) of subsection (a) or subsection (b)(2) of section
7 of the Small Business Act (15 U.S.C. 636) for the
same purpose and duplicative of amounts applied for or
received under this section; and
(D) that, during the covered period, the eligible
entity has not received amounts under paragraph (36) or
(37) of subsection (a) or subsection (b)(2) of section
7 of the Small Business Act (15 U.S.C. 636) for the
same purpose and duplicative of amounts applied for or
received under this section.
(3) Hold harmless.--An eligible entity applying for a grant
under this section shall not be ineligible for a grant if the
eligible entity is able to document--
(A) an inability to rehire individuals who were
employees of the eligible entity on February 15, 2020;
and
(B) an inability to hire similarly qualified
employees for unfilled positions on or before the date
that is 8 months after the date of enactment of this
Act.
(4) Prevention of waste, fraud, and abuse.--The Secretary
may impose requirements on applicants for the purpose of
reducing waste, fraud, and abuse in the application process for
a grant under this section in a manner that is not unduly
burdensome on applicants.
(d) Priority in Awarding Grants.--During the initial 14-day period
in which the Secretary awards grants under this section, the Secretary
shall--
(1) prioritize awarding grants to marginalized and
underrepresented communities, with a focus on women, veteran,
and minority-owned and operated eligible entities; and
(2) only award grants to eligible entities with annual
revenues of less than $1,500,000 in 2019.
(e) Grant Amount.--
(1) Aggregate maximum amount.--The aggregate amount of
grants made to an eligible entity and any affiliate businesses
of the eligible entity under this section shall not exceed
$10,000,000.
(2) Determination of grant amount.--
(A) In general.--The amount of a grant made to an
eligible entity under this section shall be equal to
the revenues of the eligible entity during 2020
subtracted from the revenues of the eligible entity in
2019, if such sum is greater than zero.
(B) Eligible entities that were not open all of
2019.--In the case of an eligible entity that was not
open during the entirety of 2019, the amount of a grant
made to the eligible entity under this section shall
be--
(i) equal to the difference between--
(I) the product obtained by
multiplying the average monthly revenue
of the eligible entity in 2019 by 12;
and
(II) the product obtained by
multiplying the average monthly revenue
of the eligible entity in 2020 by 12;
or
(ii) based on a formula determined by the
Secretary.
(C) Newly-opened eligible entities.--In the case of
an eligible entity--
(i) that opened after January 1, 2020, the
amount of a grant made to the eligible entity
under this section shall be made based on
actual expenses described in subsection (f)
incurred by the eligible entity minus any
revenues received; or
(ii) that has not yet opened as of the date
of application for a grant under this section
but has verified expenses described in
subsection (f) as of that date, the amount of a
grant made to the eligible entity under this
section shall be equal to those expenses.
(D) Sick leave.--An eligible entity applying for a
grant under this section--
(i) may request an additional grant amount
based on the amount required to provide 10 days
of paid sick leave to each employee of the
eligible entity to--
(I) care for themselves or an
immediate family member who is ill; or
(II) provide care for children when
schools or childcare providers are shut
down due to COVID-19; and
(ii) shall, if provided a grant under this
section that includes an additional amount for
sick leave described in clause (i), provide
each employee of the entity with such 10 days
of paid sick leave.
(E) Verification.--An eligible entity shall submit
to the Secretary such revenue verification
documentation as the Secretary may require to determine
the amount of a grant under this paragraph.
(3) No duplication of benefits.--An award granted under
this section to an eligible entity that received a loan under
paragraph (36) or (37) of section 7(a) of the Small Business
Act (15 U.S.C. 636(a)) shall be reduced by the amount of that
loan.
(4) Limitation.--An eligible entity may not receive more
than 1 grant under this section.
(f) Use of Funds.--
(1) In general.--During the covered period, an eligible
entity that receives a grant under this section may use the
grant funds for the following expenses incurred as a direct
result of the COVID-19 pandemic:
(A) Payroll costs.
(B) Payments of principal or interest on any
mortgage obligation (which shall not include any
prepayment of principal on a mortgage obligation).
(C) Rent payments, including rent under a lease
agreement (which shall not include any prepayment of
rent).
(D) Utilities.
(E) Maintenance expenses, including--
(i) construction to accommodate outdoor
seating; and
(ii) walls, floors, deck surfaces,
furniture, fixtures, and equipment.
(F) Supplies, including protective equipment and
cleaning materials, as required by applicable public
health departments.
(G) Food and beverage expenses that are within the
scope of the normal business practice of the eligible
entity before the covered period.
(H) Debt obligations to suppliers that were
incurred before the covered period.
(I) Operational expenses.
(J) Paid sick leave.
(K) Any other expenses that the Secretary
determines to be essential to maintaining the eligible
entity.
(2) Returning funds.--If an eligible entity that receives a
grant under this section permanently ceases operations on or
before the date that is 8 months after the date of enactment of
this Act, the eligible entity shall return to the Treasury any
funds that the eligible entity did not use for the allowable
expenses under paragraph (1).
(3) Conversion to loan.--Any grant amounts received by an
eligible entity under this section that are unused after the
date that is 8 months after the date of enactment of this Act
shall be immediately converted to a loan with--
(A) an interest rate of 1 percent; and
(B) a maturity date of 10 years beginning on the
date that is 8 months after the date of enactment of
this Act.
(g) Taxability.--
(1) In general.--For purposes of the Internal Revenue Code
of 1986--
(A) the amount of a grant awarded to an eligible
entity under this section shall be excluded from the
gross income of the eligible entity; and
(B) no deduction shall be denied or reduced, no tax
attribute shall be reduced, and no basis increase shall
be denied, by reason of the exclusion from gross income
provided by this subsection.
(2) Employee retention tax credit.--Payroll costs for which
grant funds are used under this section shall not include
qualified wages taken into account in determining the credit
allowed under section 2301 of the CARES Act (Public Law 116-
136), if the costs are used for different expenses.
(h) Regulations.--Not later than 15 days after the date of
enactment of this Act, the Secretary shall issue regulations to carry
out this section without regard to the notice and comment requirements
under section 553 of title 5, United States Code.
(i) Appropriations for Staffing and Administrative Expenses.--
(1) In general.--There is appropriated to the Secretary,
out of amounts in the Treasury not otherwise appropriated,
$300,000,000, to remain available until the date that is 8
months after the date of enactment of this Act, for staffing
and administrative expenses related to administering grants
awarded under this section.
(2) Set aside.--Of amounts appropriated under paragraph
(1), $60,000,000 shall be allocated for outreach to
traditionally marginalized and underrepresented communities,
with a focus on women, veteran, and minority-owned and operated
eligible entities, including the creation of a resource center
targeted toward these communities.
(j) Limitation With Respect to Private Funds.--
(1) Definitions.--In this subsection:
(A) Affiliate.--
(i) In general.--The term ``affiliate''
means, with respect to a person, any other
person directly or indirectly controlling,
controlled by, or under direct or indirect
common control with the person.
(ii) Control.--For purposes of clause (i),
a person shall be deemed to control another
person if the person possesses, directly or
indirectly, the power to direct or cause the
direction of the management and policies of the
other person, whether through the ownership of
voting securities, by contract, or otherwise.
(B) Executive.--The term ``executive'' means--
(i) any individual who serves as executive
or director of a person, including the
principal executive officer, principal
financial officer, comptroller or principal
accounting officer; and
(ii) an executive officer, as defined in
section 230.405 of title 17, Code of Federal
Regulations.
(C) Private fund.--The term ``private fund'' means
an issuer that would be an investment company, as
defined in the Investment Company Act of 1940 (15
U.S.C. 80a-1 et seq.), but for paragraph (1) or (7) of
section 3(c) of that Act (15 U.S.C. 80a-3(c)).
(2) Anti-evasion.--No company in which a private fund holds
an ownership interest that has, directly or indirectly,
received amounts under this section may pay any distributions,
dividends, consulting fees, advisory fees, interest payments,
or any other fees, expenses, or charges in excess of 10 percent
of the net operating profits of the company operating profits
for the calendar year ending December 31, 2021 (and for each
successive year until the covered period has ended and all
loans created under this section have been repaid), to--
(A) a person registered as an investment adviser
under the Investment Advisers Act of 1940 (15 U.S.C.
80b-1 et seq.) who advises a private fund;
(B) any affiliate of such adviser;
(C) any executive of such adviser or affiliate; or
(D) any employee, consultant, or other person with
a contractual relationship to provide services for or
on behalf of such adviser or affiliate.
(k) Demographic Data and Transparency.--
(1) Demographic data.--In establishing an application
process for carrying out this section, the Secretary shall
include a voluntary request for certain demographic data with
respect to the majority ownership of eligible entities,
including race, ethnicity, gender, and veteran status.
(2) Monthly reports.--Not later than the end of the first
month in which initial grants are disbursed under this section,
and every month thereafter until the date on which the last
grant has been disbursed under this section, the Secretary
shall submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives a report providing the number
and dollar amount of grants approved for or disbursed to all
eligible entities, including--
(A) a list of eligible entities with the grant
amount received by each eligible entity; and
(B) a breakout of the number and dollar amount of
grants by State, congressional district, demographics
(including race, ethnicity, gender, and veteran
status), and business type.
(3) Quarterly reports.--Not later than the end of the first
quarter beginning after the date of enactment of this Act, and
every subsequent quarter until the last grant that was
converted to a loan under this section is repaid, the Secretary
shall submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives a report on--
(A) the number and dollar amount of grants approved
for or disbursed to all eligible entities, including a
breakout of grants by State, congressional district,
demographics (including race, ethnicity, gender, and
veteran status), and business type; and
(B) the number and dollar amount of grants that
converted to loans under this section, including a
breakout of outstanding loans by State, congressional
district, demographics (including race, ethnicity,
gender, and veteran status), and business type.
(4) Data transparency.--Not later than 30 days after the
date of enactment of this Act, the Secretary shall make
available on a publicly available website in a standardized and
downloadable format, and update on a monthly basis, any data
contained in a report submitted under this subsection.
SEC. 5. EMERGENCY DESIGNATION.
(a) In General.--The amounts provided by this Act are designated as
an emergency requirement pursuant to section 4(g) of the Statutory Pay-
As-You-Go Act of 2010 (2 U.S.C. 933(g)).
(b) Designation in Senate.--In the Senate, this Act is designated
as an emergency requirement pursuant to section 4112(a) of H. Con. Res.
71 (115th Congress), the concurrent resolution on the budget for fiscal
year 2018.
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