MARCH 12, 2021
Yesterday the American Rescue Plan Act was signed into into law, which included the creation of the Restaurant Revitalization Fund and a number of changes to economic recovery programs created in prior stimulus acts.
RESTAURANT REVITALIZATION FUND (RRF)
One year since pandemic-related closures were ordered, $28.6 billion has been approved for the RRF, a new federal grant program for restaurant owners with 20 or fewer locations. The National Restaurant Association will host a FREE webinar that outlines the programs and the application process on Monday, March 15 at noon. CLICK HERE to register.
The eligibility definition includes restaurants, food stands, food trucks, food carts, caterers, saloons, inns, taverns, bars, lounges, brewpubs, tasting rooms, taprooms, licensed facilities or premises 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.
An eligible business may receive a tax-free federal grant equal to the amount of its pandemic-related revenue loss, calculated by subtracting its 2020 gross receipts from its 2019 gross receipts. But there is also a process for businesses started in 2020 to qualify and apply.
Funds from the grants can be spent on a wider range of expenses than previous relief programs, including mortgages or rent, utilities, supplies, food and beverage inventory, payroll, and operational expenses. Five billion dollars of the fund will be set aside for restaurants with gross receipts under $500,000 and, for the first three weeks of the application period, the Small Business Administration will prioritize awarding grants for women-, veteran-, or socially and economically disadvantaged-owned businesses.
What if I already received a PPP loan?
Businesses that received Paycheck Protection Program loans are eligible for the RRF, but grant eligibility will be lessened by the amount received. Grants will not be taxed as income and all normal federal tax deductions are protected.
What should I do now? How can I apply?
The RRF will be administered through the US Small Business Administration (SBA) and it is expected that final rules and an application portal will not be available for several more weeks. However, eligibly entities must have both a Dun & Bradstreet D-U-N-S identification number AND a System for Award Management (SAM) number to make application. Both are free to obtain, but may require days/weeks to receive, so it is important to apply now and be ready when the SBA application portal is announced and opened.
MARCH 1, 2021
The Texas Workforce Commission (TWC) has delayed the setting of the employer’s unemployment insurance tax rates until late June to allow for more time for ongoing legislative efforts and the continuing economic recovery to play out. This will effect the first two quarters of 2021. For the first quarter, ending March 31, reports are due by April 30, but payment has been adjusted to August 2. For the second quarter, ended June 30, reports are due August 2, but payment has been adjusted to September 30.
FEBRUARY 24, 2021
The IRS is giving all Texas residents and businesses an additional two months to file their federal income taxes, following the winter weather crisis. Texans will now have until June 15 to file their 2020 returns, instead of the regular deadline of April 15.The extension also includes any taxes that would have been owed by April 15, as well as any business returns that otherwise would have been due on March 15.Texans also will have until June 15 to make 2020 IRA contributions.
The Board of the Fredericksburg Chamber of Commerce has drafted a letter to Governor Greg Abbott requesting the immediate opening of Texas wineries, and is seeking support from surrounding Chambers as co-signatories.
Individuals who wish to lend support of this initiative are encouraged to contact their respective elected officials or use this one-click advocacy tool.
The Chamber has also offered public comment in support of an infrastructure cost-share agreement with The McDonald Companies, who are working to develop a 110-unit apartment complex on Friendship Lane funded using 4% tax credits from the state. The development is expected to offer a mix of one, two and three bedroom units with monthly rents ranging from $822-$1,140.
The City agreed in a 4-1 vote, with Councilman Charlie Kiehne dissenting, to a 50/50 cost share on a water line extension and curb/gutter extension totaling approximately $40,000.