RESTAURANTS Act of 2021
Bill: S.255 | Sponsor: Sen. Wicker, Roger F. (R-MS)
Policy area: Commerce

Summary:
Real Economic Support That Acknowledges Unique Restaurant Assistance Needed To Survive Act of 2021 or the RESTAURANTS Act of 2021
This bill temporarily establishes and provides funding for the Restaurant Revitalization Fund, from which the Department of the Treasury shall make grants to eligible food and beverage purveyors to cover specified costs such as payroll, operational expenses, and paid sick leave.
For the grant program's initial period, Treasury must (1) prioritize awarding grants to marginalized and underrepresented communities, and (2) only award grants to eligible food and beverage purveyors with annual revenues of less than $1.5 million in 2019. For tax purposes, grant amounts are excluded from the recipient's gross income.
An entity that received a loan under the Paycheck Protection Program established to support small businesses in response to COVID-19 (i.e., coronavirus disease 2019) may not apply for or use a restaurant revitalization grant for the same expenses for which the entity received the paycheck protection loan. Further, a grant applicant may request an additional amount to cover the cost of providing 10 days of paid sick leave to its employees.
Treasury must report a list of grant recipients with the amount each recipient received, as well as demographics and other specified information.

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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