The U.S. Small Business Administration launched the registration portal for the $28.6 billion Restaurant Revitalization Fund (RRF) on April 23, and is now accepting applications for the program.
Restaurants and other food providers hard-hit during the COVID-19 pandemic have been anxiously awaiting direct aid to help them recover after more than a year of government-imposed closures and dramatic reductions in sales. The RRF will award restaurants with grants equal to their pandemic-related revenue loss, up to $10 million per business and no more than $5 million per physical location.
All eligible restaurants are now able to submit applications, but for the first 21 days the SBA will prioritize reviewing applications from small businesses owned by women, veterans, and socially and economically disadvantaged individuals.
After the first 21 days, the SBA will fund all eligible applications on a first-come, first-serve basis, so the agency is recommending that all eligible entities submit applications as soon as the portal opens.
Eligible entities for the RRF include the following:
- Food stands, food trucks, and food carts;
- Bars, saloons, lounges, and taverns;
- Snack and nonalcoholic beverage bars;
- Bakeries, brewpubs, tasting rooms, taprooms, breweries, microbreweries, wineries, and distilleries at which on-site sales to the public comprise at least 33% of the gross receipts;
- Inns at which on-site sales of food and beverages to the public comprise at least 33% of gross receipts; and
- Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products.
RRF funds may be used for specific expenses, including:
- Business payroll costs, including sick leave;
- Payments on any business mortgage obligation;
- Business rent payments, not including prepayment of rent;
- Business debt service, both principal and interest, not including 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; and
- Business operating expenses.
How to apply
Eligible businesses can apply through SBA-recognized third-party point-of-sale vendors or directly through the SBA using the online application portal. Registration with SAM.gov is not required, and DUNS or CAGE identifiers are not necessary to apply for funding.
To verify tax information, businesses will be required to submit IRS Form 4506-T, Request for Transcript of Tax Return, completed and signed by the applicant. This requirement can be satisfied by completing this form on the SBA platform.
For gross receipts and eligible expenses documentation, any of the following documents may be submitted:
- Business tax returns (IRS Form 1120, U.S. Corporation Income Tax Return, or IRS Form 1120-S, U.S. Income Tax Return for an S Corporation);
- IRS Form 1040, U.S. Individual Income Tax Return, Schedule C, Profit or Loss From Business; IRS Form 1040, Schedule F, Profit or Loss From Farming;
- For a partnership, the partnership’s IRS Form 1065, U.S. Return of Partnership Income (including Forms K-1, Partner’s Share of Income, Deductions, Credits, etc.);
- Bank statements;
- Externally or internally prepared financial statements such as income statements or profit-and-loss statements; and
- Point-of-sale reports, including IRS Form 1099-K, Payment Card and Third Party Network Transactions.
If you have questions about the Restaurant Revitalization Fund and whether your business qualifies, or if you need help with your application, please contact our office.
This article carries no official authority, and its contents should not be acted upon without professional advice. For more information about this topic, please contact our office.