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The Restaurant Revitalization Fund Is Now Accepting Applications
What Is the Restaurant Revitalization Fund (RRF)?
The Restaurant Revitalization Fund (RRF) is part of the American Rescue Plan Act which will be providing $28.6 billion in grants to restaurants and bars affected by the COVID-19 pandemic. The SBA is administering the program and explains that the RRF “was established to provide funding to help restaurants and other eligible businesses keep their doors open”. The funding is meant to alleviate some of financial difficulties faced by the hard-hit restaurant industry due to lost revenue from mandated closures and/or capacity restrictions.
When Will the Restaurant Revitalization Fund Be Available?
The SBA began accepting applications on May 3rd, but it is important to note the priority schedule below:
During the first 21 days of the program, the SBA will be accepting applications from all eligible businesses, however they will only process and fund applications from small business concerns that are “at least 51 percent owned by one or more individuals who are:
- Socially disadvantaged individuals (those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities).
- Economically disadvantaged individuals (those socially disadvantaged individuals 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 who are not socially disadvantaged.)”
→Days 22 Onward
From day 22 until the funds are exhausted, applications by all other entities will be processed.
Do I Have to Pay the Funds Back?
No. The award does not have to be paid back provided you have used the funds on allowable expenses prior to March 11, 2023.
How Can I Use Restaurant Revitalization Funds?
The SBA lists the following as allowable expenses:
- 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
How Much Money Is My Business Eligible For?
Applicants can qualify for up $5 million per location with a maximum funding amount of $10 million total for the applicant and any affiliated businesses. The minimum award is $1,000 and funding requests below that amount will not be accepted. The award calculation formula varies slightly depending on if your restaurant was in operation prior to January 2019 or in the event your business had not yet opened. Generally, the calculation is based on your 2019 gross receipts minus your 2020 gross receipts minus any PPP loan amounts.
Can I Apply for the RRF Even If I Took a PPP Loan?
Yes, you can apply for the RRF even if you took a PPP loan or have a pending PPP application.
What if I Have a Very Small Business?
The SBA has set aside a certain amount of funds to ensure that the smallest businesses and those in underserved communities receive awards. These “set-asides” are listed as the following:
- $5 billion is set aside for applicants with 2019 gross receipts of not more than $500,000.
- An additional $4 billion is set aside for applicants with 2019 gross receipts from $500,001 to $1,500,000.
- An additional $500 million is set aside for applicants with 2019 gross receipts of not more than $50,000.
Still Have Questions?
We’ve got answers! Our COVID-19 Resource Center has up-to-date information and helpful tips for small business owners. For more information about our restaurant funding products, call us at (844) 284 – 2725 or click here to apply now.