RESTAURANTS Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 7197 To establish a $120,000,000,000 Restaurant Revitalization Fund to provide structured relief to food service or drinking establishments through De- cember 31, 2020, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JUNE 15, 2020 Mr. BLUMENAUER (for himself, Mr. FITZPATRICK, Ms. BONAMICI, Mr. EVANS, Ms. KUSTER of New Hampshire, Mr. PANETTA, Ms. PINGREE, Mr. SMITH of Washington, Mr. WELCH, and Ms. WILD) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committees on Ways and Means, and the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To establish a $120,000,000,000 Restaurant Revitalization Fund to provide structured relief to food service or drink- ing establishments through December 31, 2020, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Real Economic Sup- 4 port That Acknowledges Unique Restaurant Assistance 5 VerDate Sep 11 2014 04:21 Jul 01, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7197.IH H7197 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 7197 IH Needed To Survive Act of 2020’’ or the ‘‘RES- 1 TAURANTS Act of 2020’’. 2 SEC. 2. DEFINITIONS. 3 In this Act: 4 (1) COVERED PERIOD.—The term ‘‘covered pe- 5 riod’’ means the period beginning on February 15, 6 2020, and ending on December 31, 2020. 7 (2) ELIGIBLE ENTITY.—The term ‘‘eligible enti- 8 ty’’— 9 (A) means a restaurant, food stand, food 10 truck, food cart, caterer, saloon, inn, tavern, 11 bar, lounge, or other similar place of business— 12 (i) in which the public or patrons as- 13 semble for the primary purpose of being 14 served food or drink; and 15 (ii) that, as of March 13, 2020, is not 16 part of a chain or franchise with not less 17 than 20 locations doing business under the 18 same name, regardless of the type of own- 19 ership of the locations; and 20 (B) does not include an entity described in 21 subparagraph (A) that is— 22 (i) publicly traded, including a sub- 23 sidiary or affiliate thereof; or 24 VerDate Sep 11 2014 01:10 Jul 02, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7197.IH H7197 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 7197 IH (ii) part of a State or local govern- 1 ment facility, not including an airport. 2 (3) FUND.—The term ‘‘Fund’’ means the Res- 3 taurant Revitalization Fund established under sec- 4 tion 3. 5 (4) PAYROLL COSTS.—The term ‘‘payroll costs’’ 6 has the meaning given the term in section 7 7(a)(36)(A) of the Small Business Act (15 U.S.C. 8 636(a)(36)(A)). 9 (5) SECRETARY.—The term ‘‘Secretary’’ means 10 the Secretary of the Treasury. 11 SEC. 3. RESTAURANT REVITALIZATION FUND. 12 (a) IN GENERAL.—There is established in the Treas- 13 ury of the United States a fund to be known as the Res- 14 taurant Revitalization Fund. 15 (b) APPROPRIATIONS.— 16 (1) IN GENERAL.—There is appropriated to the 17 Fund, out of amounts in the Treasury not otherwise 18 appropriated, $120,000,000,000, to remain available 19 until December 31, 2020. 20 (2) REMAINDER TO TREASURY.—Any amounts 21 remaining in the Fund after December 31, 2020, 22 shall be deposited in the general fund of the Treas- 23 ury. 24 VerDate Sep 11 2014 04:21 Jul 01, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7197.IH H7197 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 7197 IH (c) USE OF FUNDS.—The Secretary shall use 1 amounts in the Fund to make grants described in section 2 4. 3 SEC. 4. RESTAURANT REVITALIZATION GRANTS. 4 (a) IN GENERAL.—The Secretary shall award grants 5 to eligible entities in the order in which the application 6 is received by the Secretary. 7 (b) REGISTRATION.—The Secretary shall register 8 each grant awarded under this section using the employer 9 identification number of the eligible entity. 10 (c) APPLICATION.— 11 (1) IN GENERAL.—An eligible entity desiring a 12 grant under this section shall submit to the Sec- 13 retary an application at such time, in such manner, 14 and containing such information as the Secretary 15 may require. 16 (2) CERTIFICATION.—An eligible entity apply- 17 ing for a grant under this section shall make a good 18 faith certification— 19 (A) that the uncertainty of current eco- 20 nomic conditions makes necessary the grant re- 21 quest to support the ongoing operations of the 22 eligible entity; 23 (B) acknowledging that funds will be used 24 to retain workers, maintain payroll, and for 25 VerDate Sep 11 2014 04:21 Jul 01, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7197.IH H7197 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 7197 IH other allowable expenses described in subsection 1 (e); 2 (C) that the eligible entity does not have 3 an application pending for a grant under sub- 4 section (a)(36) or (b)(2) of section 7 of the 5 Small Business Act (15 U.S.C. 636) for the 6 same purpose and duplicative of amounts ap- 7 plied for or received under this section; and 8 (D) during the covered period, that the eli- 9 gible entity has not received amounts under 10 subsection (a)(36) or (b)(2) of section 7 of the 11 Small Business Act (15 U.S.C. 636) for the 12 same purpose and duplicative of amounts ap- 13 plied for or received under this section. 14 (3) HOLD HARMLESS.—An eligible entity apply- 15 ing for a grant under this section shall not be ineli- 16 gible for a grant if the eligible entity is able to docu- 17 ment— 18 (A) an inability to rehire individuals who 19 were employees of the eligible entity on Feb- 20 ruary 15, 2020; and 21 (B) an inability to hire similarly qualified 22 employees for unfilled positions on or before 23 December 31, 2020. 24 VerDate Sep 11 2014 04:21 Jul 01, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H7197.IH H7197 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 7197 IH (d) PRIORITY IN AWARDING GRANTS.—During the 1 initial 14-day period in which the Secretary awards grants 2 under this section, the Secretary shall— 3 (1) prioritize awarding grants to marginalized 4 and underrepresented communities, with a focus on 5 women and minority-owned and operated eligible en- 6 tities; and 7 (2) only award grants to eligible entities with 8 annual revenues of less than $1,500,000. 9 (e) GRANT AMOUNT.— 10 (1) DETERMINATION OF GRANT AMOUNT.— 11 (A) IN GENERAL.—The amount of a grant 12 made to an eligible entity under this section 13 shall be based on the difference in revenues or 14 estimated revenues of the eligible entity during 15 a calendar quarter in 2020 as compared to the 16 same calendar quarter in 2019. 17 (B) VERIFICATION.—An eligible entity 18 shall submit to the Secretary such revenue 19 verification documentation as the Secretary 20 may require to determine the amount of a grant 21 under subparagraph (A). 22 (C) REPAYMENT.—Any amount of a grant 23 made under this section to an eligible entity 24 based on estimated revenues in a calendar quar- 25 VerDate Sep 11 2014 04:21 Jul 01, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H7197.IH H7197 pamtmann on DSKBC07HB2PROD with BILLS 7 •HR 7197 IH ter in 2020 that is above the actual revenues of 1 the eligible entity during that calendar quarter 2 shall be converted to a loan that has— 3 (i) an interest rate of 1 percent; and 4 (ii) a maturity date of 10 years begin- 5 ning on January 1, 2021. 6 (2) REDUCTION BASED ON PPP FORGIVENESS 7 OR EIDL EMERGENCY GRANT.—If an eligible entity 8 has, at the time of application for a grant under this 9 section, received an emergency grant under section 10 1110(e) of the CARES Act (Public Law 116–136) 11 or loan forgiveness under section 1106 of such Act 12 related to expenses incurred during the covered pe- 13 riod, the maximum amount of a grant awarded to 14 the eligible entity under this section shall be reduced 15 by the amount of funds expended by or forgiven for 16 the eligible entity for those expenses using amounts 17 received under such section 1110(e) or forgiven 18 under such section 1106. 19 (3) LIMITATION.—An eligible entity may not re- 20 ceive more than 1 grant under this section. 21 (f) USE OF FUNDS.— 22 (1) IN GENERAL.—During the covered period, 23 an eligible entity that receives a grant under this 24 section may use the grant funds for— 25 VerDate Sep 11 2014 04:21 Jul 01, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H7197.IH H7197 pamtmann on DSKBC07HB2PROD with BILLS 8 •HR 7197 IH (A) payroll costs; 1 (B) payments of principal or interest on 2 any mortgage obligation; 3 (C) rent payments, including rent under a 4 lease agreement; 5 (D) utilities; 6 (E) maintenance, including construction to 7 accommodate outdoor seating; 8 (F) supplies, including protective equip- 9 ment and cleaning materials; 10 (G) food and beverage; 11 (H) debt obligations to suppliers that were 12 incurred before the covered period; and 13 (I) any other expenses that the Secretary 14 determines to be essential to maintaining the el- 15 igible entity. 16 (2) RETURNING FUNDS.—If an eligible entity 17 that receives a grant under this section permanently 18 ceases operations on or before December 31, 2020, 19 the eligible entity shall return to the Treasury any 20 funds that the eligible entity did not use for the al- 21 lowable expenses under paragraph (1). 22 (3) CONVERSION TO LOAN.—Any grant 23 amounts received by an eligible entity under this sec- 24 VerDate Sep 11 2014 04:21 Jul 01, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H7197.IH H7197 pamtmann on DSKBC07HB2PROD with BILLS 9 •HR 7197 IH tion that are unused after December 31, 2020, shall 1 be immediately converted to a loan with— 2 (A) an interest rate of 1 percent; and 3 (B) a maturity date of 10 years. 4 (g) TAXABILITY.—For purposes of the Internal Rev- 5 enue Code of 1986— 6 (1) the amount of a grant awarded to an eligi- 7 ble entity under this section shall be excluded from 8 the gross income of the eligible entity; 9 (2) no deduction shall be denied or reduced, no 10 tax attribute shall be reduced, and no basis increase 11 shall be denied, by reason of the exclusion from 12 gross income provided by subsection; and 13 (3) an eligible entity that receives a grant under 14 this section shall not be eligible for the credit de- 15 scribed in section 2301 of the CARES Act (Public 16 Law 116–136). 17 (h) REGULATIONS.—Not later than 15 days after the 18 date of enactment of this Act, the Secretary shall issue 19 regulations to carry out this section without regard to the 20 notice and comment requirements under section 553 of 21 title 5, United States Code. 22 (i) APPROPRIATIONS FOR STAFFING AND ADMINIS- 23 TRATIVE EXPENSES.— 24 VerDate Sep 11 2014 04:21 Jul 01, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H7197.IH H7197 pamtmann on DSKBC07HB2PROD with BILLS 10 •HR 7197 IH (1) IN GENERAL.—There is appropriated to the 1 Secretary, out of amounts in the Treasury not other- 2 wise appropriated, $300,000,000, to remain avail- 3 able until December 31, 2020, for staffing and ad- 4 ministrative expenses related to administering grants 5 awarded under this section. 6 (2) SET ASIDE.—Of amounts appropriated 7 under paragraph (1), $60,000,000 shall be allocated 8 for outreach to traditionally marginalized and under- 9 represented communities, with a focus on women, 10 veteran, and minority-owned and operated eligible 11 entities, including the creation of a resource center 12 targeted toward these communities. 13 SEC. 5. EMERGENCY DESIGNATION. 14 (a) IN GENERAL.—The amounts provided by this Act 15 are designated as an emergency requirement pursuant to 16 section 4(g) of the Statutory Pay-As-You-Go Act of 2010 17 (2 U.S.C. 933(g)). 18 (b) DESIGNATION IN SENATE.—In the Senate, this 19 Act is designated as an emergency requirement pursuant 20 to section 4112(a) of H. Con. Res. 71 (115th Congress), 21 the concurrent resolution on the budget for fiscal year 22 2018. 23 Æ VerDate Sep 11 2014 04:21 Jul 01, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6301 E:\BILLS\H7197.IH H7197 pamtmann on DSKBC07HB2PROD with BILLS