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S. 4012, RESTAURANTS Act of 2020

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                                                                                                                                                                         II




                                                                     116TH CONGRESS
                                                                        2D SESSION
                                                                                                              S. 4012
                                                                     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 SENATE OF THE UNITED STATES
                                                                                                    JUNE 18, 2020
                                                                     Mr. WICKER (for himself, Ms. SINEMA, Mr. GRAHAM, and Mr. COONS) intro-
                                                                         duced the following bill; which was read twice and referred to the Com-
                                                                         mittee on Finance




                                                                                                                 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.

                                                                        1               Be it enacted by the Senate and House of Representa-
                                                                        2 tives of the United States of America in Congress assembled,
                                                                        3        SECTION 1. SHORT TITLE.

                                                                        4               This Act may be cited as the ‘‘Real Economic Sup-
                                                                        5 port That Acknowledges Unique Restaurant Assistance
                                                                        6 Needed To Survive Act of 2020’’ or the ‘‘RES-




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                                                                        7 TAURANTS Act of 2020’’.




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                                                                        1        SEC. 2. DEFINITIONS.

                                                                        2               In this Act:
                                                                        3                        (1) AFFILIATED BUSINESS.—The term ‘‘affili-
                                                                        4               ated business’’ means a business in which an eligible
                                                                        5               entity has an equity or right to profit distributions
                                                                        6               of not less than 50 percent, or in which an eligible
                                                                        7               entity has the contractual authority to control the
                                                                        8               direction of the business, provided that such affili-
                                                                        9               ation shall be determined as of any arrangements or
                                                                     10                 agreements in existence as of March 13, 2020.
                                                                     11                          (2) COVERED PERIOD.—The term ‘‘covered pe-
                                                                     12                 riod’’ means the period beginning on February 15,
                                                                     13                 2020, and ending on December 31, 2020.
                                                                     14                          (3) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
                                                                     15                 ty’’—
                                                                     16                                   (A) means a restaurant, food stand, food
                                                                     17                          truck, food cart, caterer, saloon, inn, tavern,
                                                                     18                          bar, lounge, or other similar place of business
                                                                     19                          in which the public or patrons assemble for the
                                                                     20                          primary purpose of being served food or drink;
                                                                     21                                   (B) includes an entity described in sub-
                                                                     22                          paragraph (A) that is located in an airport ter-
                                                                     23                          minal; and
                                                                     24                                   (C) does not include an entity described in




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                                                                     25                          subparagraph (A) that—


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                                                                        1                                         (i) is part of a State or local govern-
                                                                        2                                 ment facility; or
                                                                        3                                         (ii) as of March 13, 2020, owns or op-
                                                                        4                                 erates (together with any affiliated busi-
                                                                        5                                 ness) more than 20 locations, regardless of
                                                                        6                                 whether those locations do business under
                                                                        7                                 the same or multiple names.
                                                                        8                        (4) FUND.—The term ‘‘Fund’’ means the Res-
                                                                        9               taurant Revitalization Fund established under sec-
                                                                     10                 tion 3.
                                                                     11                          (5) PAYROLL COSTS.—The term ‘‘payroll costs’’
                                                                     12                 has the meaning given the term in section
                                                                     13                 7(a)(36)(A) of the Small Business Act (15 U.S.C.
                                                                     14                 636(a)(36)(A)).
                                                                     15                          (6) SECRETARY.—The term ‘‘Secretary’’ means
                                                                     16                 the Secretary of the Treasury.
                                                                     17          SEC. 3. RESTAURANT REVITALIZATION FUND.

                                                                     18                 (a) IN GENERAL.—There is established in the Treas-
                                                                     19 ury of the United States a fund to be known as the Res-
                                                                     20 taurant Revitalization Fund.
                                                                     21                 (b) APPROPRIATIONS.—
                                                                     22                          (1) IN GENERAL.—There is appropriated to the
                                                                     23                 Fund, out of amounts in the Treasury not otherwise
                                                                     24                 appropriated, $120,000,000,000, to remain available



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                                                                     25                 until December 31, 2020.


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                                                                        1                        (2) REMAINDER TO TREASURY.—Any amounts
                                                                        2               remaining in the Fund after December 31, 2020,
                                                                        3               shall be deposited in the general fund of the Treas-
                                                                        4               ury.
                                                                        5               (c) USE             OF        FUNDS.—The Secretary shall use
                                                                        6 amounts in the Fund to make grants described in section
                                                                        7 4.
                                                                        8        SEC. 4. RESTAURANT REVITALIZATION GRANTS.

                                                                        9               (a) IN GENERAL.—The Secretary shall award grants
                                                                     10 to eligible entities in the order in which applications are
                                                                     11 received by the Secretary.
                                                                     12                 (b) REGISTRATION.—The Secretary shall register
                                                                     13 each grant awarded under this section using the employer
                                                                     14 identification number of the eligible entity.
                                                                     15                 (c) APPLICATION.—
                                                                     16                          (1) IN GENERAL.—An eligible entity desiring a
                                                                     17                 grant under this section shall submit to the Sec-
                                                                     18                 retary an application at such time, in such manner,
                                                                     19                 and containing such information as the Secretary
                                                                     20                 may require.
                                                                     21                          (2) CERTIFICATION.—An eligible entity apply-
                                                                     22                 ing for a grant under this section shall make a good
                                                                     23                 faith certification—
                                                                     24                                   (A) that the uncertainty of current eco-



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                                                                     25                          nomic conditions makes necessary the grant re-


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                                                                        1                       quest to support the ongoing operations of the
                                                                        2                       eligible entity;
                                                                        3                                (B) acknowledging that funds will be used
                                                                        4                       to retain workers and maintain payroll or for
                                                                        5                       other allowable expenses described in subsection
                                                                        6                       (e);
                                                                        7                                (C) that the eligible entity does not have
                                                                        8                       an application pending for a grant under sub-
                                                                        9                       section (a)(36) or (b)(2) of section 7 of the
                                                                     10                         Small Business Act (15 U.S.C. 636) for the
                                                                     11                         same purpose and duplicative of amounts ap-
                                                                     12                         plied for or received under this section; and
                                                                     13                                  (D) that, during the covered period, the el-
                                                                     14                         igible entity has not received amounts under
                                                                     15                         subsection (a)(36) or (b)(2) of section 7 of the
                                                                     16                         Small Business Act (15 U.S.C. 636) for the
                                                                     17                         same purpose and duplicative of amounts ap-
                                                                     18                         plied for or received under this section.
                                                                     19                         (3) HOLD HARMLESS.—An eligible entity apply-
                                                                     20                ing for a grant under this section shall not be ineli-
                                                                     21                gible for a grant if the eligible entity is able to docu-
                                                                     22                ment—
                                                                     23                                  (A) an inability to rehire individuals who
                                                                     24                         were employees of the eligible entity on Feb-



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                                                                     25                         ruary 15, 2020; and


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                                                                        1                                (B) an inability to hire similarly qualified
                                                                        2                       employees for unfilled positions on or before
                                                                        3                       December 31, 2020.
                                                                        4              (d) PRIORITY IN AWARDING GRANTS.—During the
                                                                        5 initial 14-day period in which the Secretary awards grants
                                                                        6 under this section, the Secretary shall—
                                                                        7                       (1) prioritize awarding grants to marginalized
                                                                        8              and underrepresented communities, with a focus on
                                                                        9              women, veteran, and minority-owned and operated
                                                                     10                eligible entities; and
                                                                     11                         (2) only award grants to eligible entities with
                                                                     12                annual revenues of less than $1,500,000.
                                                                     13                (e) GRANT AMOUNT.—
                                                                     14                         (1) AGGREGATE MAXIMUM AMOUNT.—The ag-
                                                                     15                gregate amount of grants made to an eligible entity
                                                                     16                and any affiliate businesses of the eligible entity
                                                                     17                under this section shall not exceed $10,000,000.
                                                                     18                         (2) DETERMINATION OF GRANT AMOUNT.—
                                                                     19                                  (A) IN GENERAL.—The amount of a grant
                                                                     20                         made to an eligible entity under this section
                                                                     21                         shall be based on the difference in revenues or
                                                                     22                         estimated revenues of the eligible entity during
                                                                     23                         a calendar quarter in 2020 selected by the eligi-
                                                                     24                         ble entity as compared to 95 percent of the rev-



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                                                                        1                       enues of the eligible entity in the same calendar
                                                                        2                       quarter in 2019.
                                                                        3                                (B) VERIFICATION.—An eligible entity
                                                                        4                       shall submit to the Secretary such revenue
                                                                        5                       verification documentation as the Secretary
                                                                        6                       may require to determine the amount of a grant
                                                                        7                       under subparagraph (A).
                                                                        8                                (C) REPAYMENT.—Any amount of a grant
                                                                        9                       made under this section to an eligible entity
                                                                     10                         based on estimated revenues in a calendar quar-
                                                                     11                         ter in 2020 that is above the actual revenues of
                                                                     12                         the eligible entity during that calendar quarter
                                                                     13                         shall be converted to a loan that has—
                                                                     14                                          (i) an interest rate of 1 percent; and
                                                                     15                                          (ii) a maturity date of 10 years begin-
                                                                     16                                  ning on January 1, 2021.
                                                                     17                         (3) NO DUPLICATION OF BENEFITS.—An eligi-
                                                                     18                ble entity that received a loan under section 7(a)(36)
                                                                     19                of the Small Business Act (15 U.S.C. 636(a)(36))
                                                                     20                may not apply for or use grant amounts under this
                                                                     21                section for the same expenses for which the eligible
                                                                     22                entity received the loan.
                                                                     23                         (4) LIMITATION.—An eligible entity may not re-
                                                                     24                ceive more than 1 grant under this section.



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                                                                     25                (f) USE OF FUNDS.—


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                                                                        1                       (1) IN GENERAL.—During the covered period,
                                                                        2              an eligible entity that receives a grant under this
                                                                        3              section may use the grant funds for the following ex-
                                                                        4              penses incurred as a direct result of the COVID–19
                                                                        5              pandemic:
                                                                        6                                (A) Payroll costs.
                                                                        7                                (B) Payments of principal or interest on
                                                                        8                       any mortgage obligation.
                                                                        9                                (C) Rent payments, including rent under a
                                                                     10                         lease agreement.
                                                                     11                                  (D) Utilities.
                                                                     12                                  (E) Maintenance expenses, including—
                                                                     13                                          (i) construction to accommodate out-
                                                                     14                                  door seating; and
                                                                     15                                          (ii) walls, floors, deck surfaces, fur-
                                                                     16                                  niture, fixtures, and equipment.
                                                                     17                                  (F) Supplies, including protective equip-
                                                                     18                         ment and cleaning materials, as required by ap-
                                                                     19                         plicable public health departments.
                                                                     20                                  (G) Food and beverage expenses that are
                                                                     21                         within the scope of the normal business practice
                                                                     22                         of the eligible entity before the covered period.
                                                                     23                                  (H) Debt obligations to suppliers that were
                                                                     24                         incurred before the covered period.



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                                                                        1                                (I) Any other expenses that the Secretary
                                                                        2                       determines to be essential to maintaining the el-
                                                                        3                       igible entity.
                                                                        4                       (2) RETURNING FUNDS.—If an eligible entity
                                                                        5              that receives a grant under this section permanently
                                                                        6              ceases operations on or before December 31, 2020,
                                                                        7              the eligible entity shall return to the Treasury any
                                                                        8              funds that the eligible entity did not use for the al-
                                                                        9              lowable expenses under paragraph (1).
                                                                     10                         (3)        CONVERSION                   TO         LOAN.—Any            grant
                                                                     11                amounts received by an eligible entity under this sec-
                                                                     12                tion that are unused after December 31, 2020, shall
                                                                     13                be immediately converted to a loan with—
                                                                     14                                  (A) an interest rate of 1 percent; and
                                                                     15                                  (B) a maturity date of 10 years.
                                                                     16                (g) TAXABILITY.—For purposes of the Internal Rev-
                                                                     17 enue Code of 1986—
                                                                     18                         (1) the amount of a grant awarded to an eligi-
                                                                     19                ble entity under this section shall be excluded from
                                                                     20                the gross income of the eligible entity;
                                                                     21                         (2) no deduction shall be denied or reduced, no
                                                                     22                tax attribute shall be reduced, and no basis increase
                                                                     23                shall be denied, by reason of the exclusion from
                                                                     24                gross income provided by subsection; and



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                                                                        1                       (3) an eligible entity that receives a grant under
                                                                        2              this section shall not be eligible for the credit de-
                                                                        3              scribed in section 2301 of the CARES Act (Public
                                                                        4              Law 116–136).
                                                                        5              (h) REGULATIONS.—Not later than 15 days after the
                                                                        6 date of enactment of this Act, the Secretary shall issue
                                                                        7 regulations to carry out this section without regard to the
                                                                        8 notice and comment requirements under section 553 of
                                                                        9 title 5, United States Code.
                                                                     10                (i) APPROPRIATIONS FOR STAFFING AND ADMINIS-
                                                                     11          TRATIVE EXPENSES.—

                                                                     12                         (1) IN GENERAL.—There is appropriated to the
                                                                     13                Secretary, out of amounts in the Treasury not other-
                                                                     14                wise appropriated, $200,000,000, to remain avail-
                                                                     15                able until December 31, 2020, for staffing and ad-
                                                                     16                ministrative expenses related to administering grants
                                                                     17                awarded under this section.
                                                                     18                         (2) SET              ASIDE.—Of                amounts appropriated
                                                                     19                under paragraph (1), $60,000,000 shall be allocated
                                                                     20                for outreach to traditionally marginalized and under-
                                                                     21                represented communities, with a focus on women,
                                                                     22                veteran, and minority-owned and operated eligible
                                                                     23                entities, including the creation of a resource center
                                                                     24                targeted toward these communities.



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                                                                        1        SEC. 5. EMERGENCY DESIGNATION.

                                                                        2               (a) IN GENERAL.—The amounts provided by this Act
                                                                        3 are designated as an emergency requirement pursuant to
                                                                        4 section 4(g) of the Statutory Pay-As-You-Go Act of 2010
                                                                        5 (2 U.S.C. 933(g)).
                                                                        6               (b) DESIGNATION IN SENATE.—In the Senate, this
                                                                        7 Act is designated as an emergency requirement pursuant
                                                                        8 to section 4112(a) of H. Con. Res. 71 (115th Congress),
                                                                        9 the concurrent resolution on the budget for fiscal year
                                                                     10 2018.
                                                                                                                                 Æ




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