Partner and Financial Planner at Blue Rock Dravo Bay. Financial Planning is just that, planning for the expected and the unknown. My strongest commitment to clients is to be a familiar, trusted face during their time of need.
Major help for the hospitality industry is finally within sight, even though that assistance will be too late for some, many will receive the funding they have been hoping for. Over a year after the pandemic began decimating restaurants across the country — shuttering thousands of venues, putting millions out of work, the U.S. government will finally start disbursing targeted aid to one of the hardest-hit sectors of the U.S. economy. Funding will come from the $28.6 billion Restaurant Revitalization Fund (RRF), authorized by the March American Rescue Plan.
This program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Restaurants that land a grant from the RRF will be given until March 11, 2023 to spend the money.
Who is Eligible?
Restaurants, bars, food stands, food trucks, food carts, caterers, bakeries, brewpubs, tasting rooms, tap rooms, breweries with at least 33% of onsite sales, wineries, and distilleries with at least 33% of onsite sales, Inns (with onsite food and beverage sales of at least 33% of gross receipts) businesses impacted by Covid-19
As a side note businesses owned by women, veterans, or socially & economically disadvantaged group (Black/Hispanic/Native Americans or those whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area) with at least 51% ownership will be given priority. SBA will accept applications from all eligible applicants, but only process & fund priority groups on days 1-21 of the program. Days 22 through all funds are exhausted are open to all applicants
Registration for the SBA application portal will begin on Friday April 30, 2021 at 9am. Applications will open on Monday May 3, 2021 at noon et.
How to Apply
You can apply through SBA-recognized Point of Sale (POS) vendors or directly via SBA in a forthcoming online application portal: https://restaurants.sba.gov. Participating POS providers include Square, Toast, Clover, NCR Corporation (Aloha). If you are working with Square or Toast, you do not need to register beforehand on the https://restaurants.sba.gov application portal.
Registration with SAM.gov is not required. DUNS or CAGE identifiers are also not required.
Additional documentation required:
- Verification for Tax Information: IRS Form 4506-T, completed and signed by Applicant. Completion of this form digitally on the SBA platform will satisfy this requirement.
- Gross Receipts Documentation: Any of the following documents demonstrating gross receipts and, if applicable, eligible expenses
- Business tax returns (IRS Form 1120 or IRS 1120-S)
- IRS Forms 1040 Schedule C; IRS Forms 1040 Schedule F
- For a partnership: partnership’s IRS Form 1065 (including K-1s)
- Bank statements
- Externally or internally prepared financial statements such as Income Statements or Profit and Loss Statements
- Point of sale report(s), including IRS Form 1099-K
When does an eligible entity have to have been established to receive a Restaurant Revitalization Fund Grant?
There is no requirement for an entity to have been open before a particular date.
If an entity was not open prior to January 1, 2020, it is still eligible for RRFG. Even if an entity has not opened by the date of the application, it can apply for eligible expenses incurred in preparing to open. For entities opened or that were planning to open after January 1, 2020, the grant fund eligibility generally follows a formula similar to:
[Eligible Expenses Incurred] – [Gross Receipts] – [PPP Loans] = Grant Fund
What is the minimum and/or maximum amount an entity can receive?
A minimum grant amount of $1,000 for eligible entities. The maximum grant amount is $5M per location and $10M total for the eligible entity.
Allowable Use of Funds
Funds may be used for specific expenses including:
- Business payroll costs (including sick leave)
- Payments on any business mortgage obligation
- Business rent payments (note: this does not include prepayment of rent)
- Business debt service (both principal and interest; note: this does not include any prepayment of principal or interest)
- Business utility payments
- Business maintenance expenses
- Construction of outdoor seating
- Business supplies (including protective equipment and cleaning materials)
- Business food and beverage expenses (including raw materials)
- Covered supplier costs
- Business operating expenses