Registrations begin on Friday, April 30, 2021, at 8 a.m. CDT and the application portal is scheduled to open on Monday, May 3, 2021, at 11am CDT.
For the first 21 days, the Small Business Administration (SBA) will prioritize funding applications from businesses owned and controlled by women, veterans, and socially and economically disadvantaged individuals.
Apply ASAP! Here’s the link to register with the SBA.
If you prefer to listen, check out this webinar for a step by step guide.
Follow along as Jeff completes the application (available here.).
Below is an overview but many questions are answered here on the SBA website.
What is it?
The Restaurant Revitalization Fund (RRF) provides emergency assistance for eligible restaurants, bars, and other qualifying businesses impacted by COVID-19. Recipients are not required to repay the funding as long as funds are used for “eligible expenses” no later than March 11, 2023.
Who is eligible for RRF grants?
If you serve food and/or drinks to the public, you are eligible, including a restaurant, food stand, food truck, food cart, caterer, tavern, bar, lounge, brewpub, and bakery/other food service businesses (if at least 33.00% of gross receipts are from onsite sales to the public). All you have to do is make a certification that economic conditions make the grant necessary (impacted by COVID-19). However, big publicly traded companies are not eligible. Restaurant organizations that operate more than 20 locations (under same or different name) are also not eligible. Additionally, organizations that applied for a Shuttered Venue Operators Grant or received a grant are not eligible and vice versa.
How much can I get from RRF?
Generally, restaurants can apply for grants that are equal to 2020 gross revenue minus 2019 gross revenue minus PPP loan amounts. Grant funds will not be taxed like income.
For example, (i) if gross revenue was $250,000 in 2019 but only $50,000 in 2020, and (ii) you received $40,000 in PPP loan(s), (iii) then you’re eligible for a grant of $160,000 ($250,000 – $50,000 – $40,000 = $160,000).
If a restaurant was not operating for all of 2019, the maximum grant value is the average monthly gross receipts in 2020 minus the average monthly gross receipts in 2019 minus PPP loan amounts. If a restaurant was not in operation for all of 2020, it could potentially receive a grant that totals the amount of “eligible expenses” between February 15, 2020, and March 11, 2021 minus 2020 gross receipts minus PPP loan amounts.
What can RRF be used for?
The RRF grants can only be used on specific expenses. These include:
- Payroll Costs
- Paid sick leave
- Mortgage, rent and utilities
- Maintenance (including construction of outdoor seating & PPE)
- Food and beverage raw materials/supplies
- Other operational expenses
Once you get the grant, you are allowed to use grant funds on “eligible expenses” during a “covered period” incurred between February 15, 2020 to March 11, 2023.
How and when can I apply?
SBA will administer RRF directly. Applications are NOT made through a bank or credit union.
SBA Portal opens for registration on Friday, April 30, 2021, at 8 a.m. CDT and open for applications on Monday, May 3, 2021, at 11am CDT. Applications will be accepted until December 31st, 2021 or until funds run out. Start here!
In preparation, become familiar with the application in advance to ensure a smooth and efficient application experience, specifically by:
- Register for an account here in advance starting Friday, April 30, 2021
- Review SBA guidance, frequently asked questions, and application sample.
- Make sure all tax filings are up to date.
All eligible applicants are encouraged to submit applications as soon as the portal opens, particularly if you qualify for the early period. Following the first phase of 21 days, all eligible applications will be funded on a first-come, first-served basis.