Program

COVID-19 Federal Assistance e311

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Lost Revenue & Revenue Replacement, Tourism

Regarding tourism non-profit revenue loss funds, what documentation must be maintained and submitted regarding the fund? What reporting to the federal government is required?

There are currently no submission requirements and no separate documentation requirements that apply specifically to tourism-based nonprofits. However, as described below, there are several reporting requirements with which recipients (which would include tourism-based nonprofits) must comply.

The American Rescue Plan Act of 2021 (“ARP”) allows the use of Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) “to respond to the public health emergency with respect to COVID-19 or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality.”[1] The U.S. Department of the Treasury’s (“Treasury”) Interim Final Rule (the “Rule”) provides guidance indicating that tourism, in many cases, will meet eligibility requirements for the use of CSLFRF funds.[2]

General Reporting Requirements

CSLFRF award recipients must comply with Treasury’s Compliance and Reporting Guidance (“Reporting Guidance”) which lays out the requirements and deadlines for reports. The Reporting Guidance explains in detail the three main reports ARP fund recipients must provide:

  • Interim Report (to be submitted by August 31, 2021, with expenditures by category)
  • Project and Expenditure Report (to be submitted by October 31, 2021)
  • Recovery Plan Performance Report (if applicable, to be submitted by August 31, 2021)[3]

The Reporting Guidance further explains that CSLFRF recipients must comply with the Uniform Administrative Requirements Cost Principles for Federal Awards at 2 Code of Federal Regulations (“CFR”) Part 200.[4] Part 2 of the Reporting Guidance describes in detail Treasury’s reporting requirements relating to the use of the ARP funds.[5]

On August 9, 2021, Treasury released the Portal for Recipient Reporting State and Local Fiscal Recovery Funds User Guide to assist recipients with submitting required reports through the Treasury portal.[6] Treasury has provided a Recovery Plan Template to assist with completing the reporting requirements.[7] 

The Rule describes the CSLFRF reporting requirements.[8] To facilitate transparency and accountability, the Rule implementing the CSLFRF authorities requires that state, local, and tribal governments publicly report assistance provided to private-sector businesses, including tourism, travel, hospitality, and other impacted industries, with regard to negative economic impacts of the pandemic. Recipients should also maintain records to support their assessment of how businesses or business districts receiving assistance were affected by the negative economic impacts of the pandemic and how ARP funds remediated any negative downstream effects.[9],[10] 

U.S. Economic Development Administration ("EDA")

In addition to assistance authorized by the ARP CSLFRF provisions, ARP also appropriated $3 billion to the U.S. Economic Development Administration (“EDA”), including $750 million specifically allocated to the Travel, Tourism, & Outdoor Recreation Program.[11] This funding will support the following EDA efforts:

  • State Tourism Grants: $510 million in non-competitive awards to help states quickly invest in marketing, infrastructure, workforce, and other projects to rejuvenate safe leisure, business, and international travel; and
  • Competitive Tourism Grants: $240 million to help communities that have been hardest hit by challenges facing the travel, tourism, and outdoor recreation sectors to invest in infrastructure, workforce, or other projects to support the recovery of the industry and economic resilience of the community in the future.[12]

EDA's notice relating to these grants indicates that a “public or private non-profit organization or association acting in cooperation with officials of a political subdivision of a State” can be an eligible applicant for the purposes of this EDA program.[13]

The relevant reporting requirements for recipients of EDA’s Competitive Tourism Grant are outlined in the Fiscal Year 2021 ARP Travel, Tourism, and Outdoor Recreation Notice of Funding Opportunity – Executive Summary (“the Notice”).[14]

Further, the Notice includes a table that outlines the requirements for completing an application.[15] There are no application submission deadlines; however, because applications are reviewed on a rolling basis, the suggested application submission date is March 12, 2022; notably, funding is not guaranteed for submissions received after January 31, 2022.[16]

Some Reporting Requirements for Recipients of EDA Competitive Tourism Grants

  • Submit financial, progress, and impact reports with the terms and conditions of the grant award, generally less than semi-annually. All project progress and financial reports must be submitted to the applicable EDA program officer in an electronic format to be determined at the time of award.[17]
  • Report information about subrecipients. All awardees of applicable grants and cooperative agreements are required to report to the Federal Subaward Reporting System (“FSRS”) available at www.FSRS.gov on all subawards over $30,000. Please see the OMB guidance published at 2 C.F.R. part 170.[18]
  • Provide additional data on activities, outputs, and actual impact of the funded investment, in part to fulfill the requirements of the Government Performance and Results Act (“GPRA”). EDA anticipates that recipients will be expected to track their engagement activities within the scope of work, with project beneficiaries, and other project stakeholders. EDA further anticipates recipients will be expected to collect data, using surveys of beneficiaries or clients, if necessary, on the outputs and outcomes of their activities, such as the number of strategic plans or economic development tools developed, the number of new business partnerships formed, or the range of new capabilities acquired. EDA plans to collect this information using Forms ED-915 (Public Works, Economic Adjustment Infrastructure and Revolving Loan Fund Investments), ED-916 (Semi-annual Program Outputs Questionnaire for EDA grantees), ED-917 (Annual Capacity Outcomes Questionnaire for EDA Grantees serving clients), and ED-918 (Annual Capacity Outcomes Questionnaire for EDA Grantees).[19]

Last Revised: August 23, 2021

[1] American Rescue Plan Act of 2021 § 9901, Pub. L. No. 117-2, amending 42 U.S.C. §801 et seq., at Section 603(c)(1)(A) (emphasis added), available at: https://www.congress.gov/bill/117th-congress/house-bill/1319/text#HC028912924A04512A1F80BFA0F1C1051.

[2] Treas. Reg. 31 CFR 35 at 36-37, available at: https://home.treasury.gov/system/files/136/FRF-Interim-Final-Rule.pdf

[3] U.S. Department of the Treasury, “Compliance and Reporting Guidelines”, available at: https://home.treasury.gov/system/files/136/SLFRF-Compliance-and-Reporting-Guidance.pdf.

[4] Id., at 6.

[5] Id., at 12-30.

[6] U.S. Department of the Treasury, “Treasury’s Portal for Recipient Reporting State and Local Fiscal Recovery Funds,” available at: https://home.treasury.gov/system/files/136/SLFRF_Treasury-Portal-Recipient-Reporting-User-Guide.pdf.

[8] Treas. Reg. 31 CFR 35 at 110-112, available at: https://home.treasury.gov/system/files/136/FRF-Interim-Final-Rule.pdf

[9] Id., at 36-38. 

[10] Treasury has also issued a series of Frequently Asked Questions (“FAQs”) relating to the use of CSLFRF assistance.  FAQ #9.1 and 9.2 generally discuss Treasury’s reporting requirements for uses of CLFRF funds. See Coronavirus State and Local Fiscal Recovery Funds, Frequently Asked Questions (as of July 19, 2021) – FAQ #9.1, #9.2, at 35, available at: https://home.treasury.gov/system/files/136/SLFRPFAQ.pdf.

[11] EDA, American Rescue Plan Programs, “See Notice of Funding Opportunity,” available at: https://eda.gov/arpa/travel-tourism/.

[12] EDA, “FY 2021 American Rescue Plan Act Travel, Tourism, and Outdoor Recreation Notice of Funding Opportunity,” available at: https://www.grants.gov/web/grants/view-opportunity.html?oppId=334748.

[13] Id.

[14] EDA, American Rescue Plan Programs, “See Notice of Funding Opportunity,” available at: https://eda.gov/arpa/travel-tourism/.

[15] Id., at Section Additional Information, “See Related Documents,” at 15-20.

[16] Id., at Section Synopsis.

[17] Id., at Section Synopsis.

[18] Id., at Section Synopsis. See also 2 CFR 170, available at: https://www.ecfr.gov/cgi-bin/text-idx?node=pt2.1.170&rgn=div5.

[19] Id., at Section Additional Information, “See Related Documents.”