Originally Posted 5.12.2021
Are you a restaurants and other eligible businesses that has been struggling to keep your doors open global pandemic? Then you might be eligible for the Restaurant Revitalization Fund!
Restaurant Revitalization Fund (RRF)
This is a grant program offered by the Federal Government through the Small Business Administration as part of the March 11, 2021 American Rescue Plan Act. Through this grant program, restaurants and other eligible entities across the nation will have access in over $28.6 billion in grants to support the impacts that loss in revenue and operating activities the pandemic has imposed on these businesses.
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. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.
The SBA officially launched the opening of the RRF application on May 3, 2021.
Who is an Eligible Recipient?
Food stands, food trucks, food carts
Bars, saloons, lounges, taverns
Snack and nonalcoholic beverage bars
Bakeries (onsite sales to the public comprise at least 33% of gross receipts)
Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts)
Breweries and/or microbreweries (onsite sales to the public comprise at least 33% of gross receipts)
Wineries and distilleries (onsite sales to the public comprise at least 33% of gross receipts)
Inns (onsite sales of food and beverage to the public comprise at least 33% of gross receipts)
Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products
What can funds be used on?
Funds may be used for specific expenses, which include:
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
Where do we go to apply for this program?
The RRF program is administered by the Small Business Administration.
Additional Random Questions Answered
How much can a business receive?
SBA may provide funding up to $5 million per location, not to exceed $10 million total for the applicant and any affiliated businesses. The minimum award is $1,000.
Depending on when your business opened, there are three ways to calculate your payment.
Calculation 1: for applicants in operation prior to or on January 1, 2019:
2019 gross receipts minus 2020 gross receipts minus PPP loan amounts
Calculation 2: for applicants that began operations partially through 2019:
(Average 2019 monthly gross receipts x 12) minus 2020 gross receipts minus PPP loan amounts
Calculation 3: for applicants that began operations on or between January 1, 2020 and March 10, 2021 and applicants not yet opened but have incurred eligible expenses:
Amount spent on eligible expenses between February 15, 2020 and March 11, 2021 minus 2020 gross receipts minus 2021 gross receipts (through March 11, 2021) minus PPP loan amounts
For those entities who began operations partially through 2019, you may elect (at your own discretion) to use either calculation 2 or calculation 3.
If the RRF program open for all eligible businesses?
The SBA will accept applications from all eligible applicants, but only process and fund priority group applications for the first 21 days of the program. Starting day 22, the SBA will accept applications from all eligible applications and process applications in the order in which they are approved by the SBA until funds are exhausted.
Priority groups include
A small business concern that is at least 51 percent owned by one or more individuals who are:
Socially and economically disadvantaged (see below).
Applicants must self-certify on the application that they meet eligibility requirements
Socially disadvantaged individuals are 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 are 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.
What can I do to prepare?
Utilize the SBA's Restaurant Revitalization Funding Program Guide to help you gather and prepare necessary materials needed for the RRF application. Also check out the SBA's Application Sample for help.
Is an entity that applied for and received a PPP loan eligible to apply for a RRF?
Yes. However, PPP Loans will affect the RRF's applicant's funding calculation
Is a seasonal employer eligible for the RRF program?
Yes, being a seasonal employer does no disqualify an entity.
If I started a food establishment after the pandemic began am I eligible?
An entity must have been established to incur eligible expense before March 11, 2021.
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 formula is:
[Eligible Expenses Incurred February 15, 2020 to March 11, 2021] – [2020 Gross Receipts] – [PPP Loans] = GRANT FUND