ENTREE Act to Replenish RRF

House Small Business Committee Ranking Republican Blaine Luetkemeyer introduced legislation to replenish the Restaurant Revitalization Fund (RRF).  Appropriately titled the ENTRÉE Act, this bill generally reflects the GOP’s preference for how to replenish the RRF.  The bill is like the Restaurant Revitalization Fund Replenishment Act, H.R. 3807, in that it would provide $60 billion in additional funding for RRF.  However, it differs in two important ways. 

1. It reprograms money to “pay for” the RRF money.
2. It requires grants to be paid out in the order they were received, which eliminates the priority group designation. 
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This legislation demonstrates House Republicans are hearing our grassroots and lobbying efforts. It is also an important step in outlining the goalposts from which a deal could eventually be conceived.  In our lobbying, we know that Republicans support more money from RRF.  They just believe it should come from existing pandemic funds.  GOP members are concerned with the priority group designation, which has been a source of litigation.  Hence, the decision to provide funds on a first come basis.  This is largely a moot point as both pieces of legislation contain enough funding to ensure all applicants are funded.
 
What does the introduction of the ENTRÉE Act mean?
Driving up cosponsors of the ENTRÉE Act will be helpful in demonstrating and building support for a solution.  So, we are still operating under the same strategy, but now there is a bill Republicans are going to be more willing to cosponsor.  Do not expect Democrats to cosponsor this legislation.  Rather, they should be directed to cosponsor H.R. 3807.  We also are not picking favorites.  Cosponsoring either bill is a sign of support for RRF funding.
 
Unfortunately, this doesn’t necessarily accelerate timing.  It remains unlikely that a solution is reached before Congress adjourns for August.  The House isn’t schedule to return until the week of September 20th.  We should use this time to continue to press the need to replenish RRF. 
 
The ENTRÉE Act will:

• Provide $60 billion to the SBA RRF paid for by rescinding money from unspent Economic Injury Disaster Loans (EIDL) and state and local funds within President Biden’s American Rescue Plan.
  • Rescind $60 billion from ARP from the following sections:
    • SEC. 5002. TARGETED EIDL ADVANCE
    • SEC. 602. CORONAVIRUS STATE FISCAL RECOVERY FUND
    • ▪SEC. 603. CORONAVIRUS LOCAL FISCAL RECOVERY FUND
• Increase oversight responsibilities and audit requirements for the SBA to safeguard American taxpayer dollars.
  • Include H.R. 3551, to amend the American Rescue Plan Act of 2021 to require increased oversight with respect to restaurant revitalizations grants, and for other purposes.
• Eliminate preferential treatment for priority groups by striking Section 5003(c)(3) language of the American Rescue Plan Act of 2021:
  •  “The Administrator may take such steps as necessary to ensure that eligible entities described in this subparagraph have access to grant funding under this section after the end of such 21-day period.”

• Require all applications to be received, reviewed, processed, and disbursed on a first come, first served basis.