Sec. 620. Support for restaurants
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This section may be cited as the or the Real Economic Support That Acknowledges Unique Restaurant Assistance Needed To Survive Act of 2020 . RESTAURANTS Act of 2020 In this section: 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.
The term covered period means the period beginning on February 15, 2020, and ending on June 30, 2021. The term eligible entity — 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; and that, as of March 13, 2020, owns or operates (together with any affiliated business) not more than 20 locations, regardless of whether those locations do business under the same or multiple names; means an entity that is located in an airport terminal and that, as of March 13, 2020, sold any food and beverage, if, as of March 13, 2020, the entity owns or operates (together with any affiliated business) not more than 20 locations, regardless of whether those locations do business under the same or multiple names; and does not include an entity described in subparagraph
(A)or
(B)that is part of a State or local government facility, not including an airport. The term Fund means the Restaurant Revitalization Fund established under subsection (c). With respect to an individual, the term immediate family member means any parent or child of the individual. 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) ). The term Secretary means the Secretary of the Treasury. There is established in the Treasury of the United States a fund to be known as the Restaurant Revitalization Fund. There is appropriated to the Fund, out of amounts in the Treasury not otherwise appropriated, $120,000,000,000, to remain available until June 30, 2021. Any amounts remaining in the Fund after June 30, 2021, shall be deposited in the general fund of the Treasury. The Secretary shall use amounts in the Fund to make grants described in section subsection (d). The Secretary shall award grants to eligible entities in the order in which the application is received by the Secretary. The Secretary shall register each grant awarded under this subsection using the employer identification number of the eligible entity. An eligible entity desiring a grant under this subsection shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. An eligible entity applying for a grant under this subsection shall make a good faith certification— that the uncertainty of current economic conditions makes necessary the grant request to support the ongoing operations of the eligible entity; acknowledging that funds will be used to retain workers, for payroll costs, and for other allowable expenses described in paragraph
(6)and not for any other purposes; that the eligible entity does not have an application pending for a grant under subsection (a)(36) or (b)(2) of section 7 of the Small Business Act ( 15 U.S.C. 636 ) for the same purpose and that is duplicative of amounts applied for or received under this section; and during the covered period, that the eligible entity has not received amounts under subsection (a)(36) or (b)(2) of section 7 of the Small Business Act ( 15 U.S.C. 636 ) for the same purpose and that is duplicative of amounts applied for or received under this section. An eligible entity applying for a grant under this subsection shall not be ineligible for a grant if the eligible entity is able to document— an inability to rehire individuals who were employees of the eligible entity on February 15, 2020; and an inability to hire similarly qualified employees for unfilled positions on or before June 30, 2021. During the initial 14-day period in which the Secretary awards grants under this subsection, the Secretary shall— prioritize awarding grants to marginalized and underrepresented communities, with a focus on women-, veteran-, and minority-owned, and women-, veteran-, and minority-operated eligible entities; and only award grants to eligible entities with annual revenues of less than $1,500,000. The amount of a grant made to an eligible entity under this subsection shall be equal to— the sum of the revenues or estimated revenues of the eligible entity during each calendar quarter in 2020 subtracted from the sum of such revenues during the same calendar quarter in 2019, if such sum is greater than zero; and if applicable, the additional amount required to pay for sick leave described under clause (ii). An eligible entity applying for a grant under this section— may request an additional grant amount based on the amount required to provide 10 days of paid sick leave to each employee of the entity to— care for themselves or an immediate family member who is ill; or provide care for children when schools or childcare providers are shut down due to COVID–19; and shall, if provided a grant under this section that includes an additional amount for sick leave described under subclause (I), provide each employee of the entity with such 10 days of paid sick leave. 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 clause (i). Any amount of a grant made under this subsection to an eligible entity based on estimated revenues in a calendar quarter in 2020 that is greater than the actual revenues of the eligible entity during that calendar quarter shall be converted to a loan that has— an interest rate of 1 percent; and a maturity date of 10 years beginning on January 1, 2021. If an eligible entity has, at the time of application for a grant under this subsection, received an advance under section 1110(e) of the CARES Act ( 15 U.S.C. 9009(e) ) or loan forgiveness under section 1106 of such Act ( 15 U.S.C. 9005 ) related to expenses incurred during the covered period, the maximum amount of a grant awarded to the eligible entity under this subsection shall be reduced by the amount of funds expended by or forgiven for the eligible entity for those expenses using amounts received under such section 1110(e) or forgiven under such section 1106. An eligible entity may not receive more than 1 grant under this subsection. 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. During the covered period, an eligible entity that receives a grant under this subsection may use the grant funds for— payroll costs; payments of principal or interest on any mortgage obligation; rent payments, including rent under a lease agreement; utilities; maintenance expenses, including— construction to accommodate outdoor seating; and walls, floors, deck surfaces, furniture, fixtures, and equipment; supplies, including protective equipment and cleaning materials; food, beverage, and operational expenses that are within the scope of the normal business practice of the eligible entity before the covered period; debt obligations to suppliers that were incurred before the covered period; costs associated with providing employees with 10 days of sick leave, as described in paragraph (5)(A)(ii); and any other expenses that the Secretary determines to be essential to maintaining the eligible entity. If an eligible entity that receives a grant under this subsection permanently ceases operations on or before June 30, 2021, the eligible entity shall return to the Treasury any funds that the eligible entity did not use for the allowable expenses under subparagraph (A). Any grant amounts received by an eligible entity under this subsection that are unused after June 30, 2021, shall be immediately converted to a loan with— an interest rate of 1 percent; and a maturity date of 10 years. Not later than 15 days after the date of enactment of this Act, the Secretary shall issue regulations to carry out this subsection without regard to the notice and comment requirements under section 553 of title 5, United States Code. Of the amounts provided by subsection (c)(2)(A), $300,000,000 shall be for staffing and administrative expenses related to administering grants awarded under this subsection. Of amounts provided under subparagraph (A), $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. No amounts received under this section may be directly or indirectly used to pay distributions, dividends, consulting fees, advisory fees, interest payments, or any other fees, expenses, or charges to— 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; any affiliate of such adviser; any executive of such adviser or affiliate; or any employee, consultant, or other person with a contractual relationship to provide services for or on behalf of such adviser or affiliate. No company in which a private fund holds an ownership interest that has, directly or indirectly, received amounts under this title may pay any distributions, dividends, consulting fees, advisory fees, interest payments, or any other fees, expenses, or charges in excess of 10 percent of such company's net operating profits for the calendar year ending December 31, 2020 (and for each successive year until the covered period has ended and all loans created under this section have been repaid), to— 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; any affiliate of such adviser; any executive of such adviser or affiliate; or any employee, consultant, or other person with a contractual relationship to provide services for or on behalf of such adviser or affiliate. In this section: 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 such person. For purposes of clause (i), a person shall be deemed to control another person if such person possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of such other person, whether through the ownership of voting securities, by contract, or otherwise. The term executive means— any individual who serves an executive or director of a person, including the principal executive officer, principal financial officer, comptroller or principal accounting officer; and an executive officer, as defined in section 230.405 of title 17, Code of Federal Regulations, or any successor regulation. The term private fund means an issuer that would be an investment company, as defined in section 3 of the Investment Company Act of 1940 ( 15 U.S.C. 80a–3 ), but for paragraph
(1)or
(7)of section 3(c) of that Act. 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. 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 list of eligible entities with the grant amount received by the eligible entity; and a breakout of the number and dollar of grants by State, congressional district, demographics (including race, ethnicity, gender, and veteran-status), and business type. Beginning on January 1, 2021, 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— 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 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. 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 section.
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- 15 USC 80b–1
- 15 USC 80a–3
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