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America’s restaurants were hard-hit by the COVID-19 pandemic. The Restaurant Revitalization Fund (RRF) is designed to help. Established by the American Rescue Plan Act, the RRF has $28.6 billion available for restaurants and similar providers that lost revenue due to the COVID-19 pandemic.
If the funds are used for eligible purposes by March 11, 2023, recipients don’t have to pay them back.
Wineries, inns, catering services and other businesses that serve food and beverages may also be eligible for RFF funds. Here’s what small business owners should know about the RRF.
Please keep in mind this information is changing rapidly and is based on our current understanding of the programs. It can and likely will change. Although we will be monitoring and updating this as new information becomes available, please do not rely solely on this for your financial decisions. We encourage you to consult with your lawyers, CPAs and Financial Advisors.
Eligible applicants for RRF include:
If your bakery, brewpub, tasting room, taproom, brewery, microbrewery, inn, winery or distillery opened in 2020 or hasn’t yet opened, your original business model must have assumed that at least 33 percent of gross receipts would be from on-site sales to the public.
To be eligible, your business must meet a few other criteria.
To figure out how much to apply for, calculate the amount of lost revenues due to the pandemic. There are three different calculation formulas depending on whether you:
Calculations are simplest for applicants that were in business on or before January 1, 2019. Subtract 2020 gross receipts from 2019 gross receipts as reported on your federal tax return. (Funds from a PPP or EIDL loan, advances on EIDL, state and local grants via CARES Act or otherwise, and SBA Section 1112 payments do not count toward gross receipts for this program.) Then subtract the aggregate original disbursement amount of any PPP loan you received (excluding any PPP loan repaid on or before May 18, 2020).
The minimum award is $1,000; the maximum award is $10 million per business and no more than $5 million per location.
If you have multiple locations that all operate under the same EIN, you must file a single application for all the locations. If each location has its own EIN, you must complete a separate application for each.
Funds may be used for expenses including:
You can reimburse yourself for personal funds you used for eligible expenses incurred on or after February 15, 2020; however, your business financial statements should document that your business owes you money.
SBA is prioritizing funding in two phases.
To help ensure equitable distribution, SBA has set aside:
If you received an Economic Injury Disaster Loan (EIDL) or a Paycheck Protection Program (PPP loan), you can still apply for RRF, but any PPP loans you received will affect your funding calculation. If you have a pending PPP application, you must withdraw it when you apply for RRF.
If you have a pending application for or received a Shuttered Venue Operators Grant (SVOG), you cannot apply for RRF. However, if your SVOG application was denied, you can apply for RRF.
You won’t have to pay the money back if it’s used for eligible purposes no later than March 11, 2023. Any money not used by that time must be returned to the government.
Applications open on Monday, May 3, at noon Eastern time. If you use an SBA-recognized Point of Sale Restaurant Partner (Square, Toast, Clover or NCR Aloha), applying through that partner is the fastest and easiest way to apply, because they already have your financial data.
If you don’t use one of these partners, you can apply on the application portal.
Demand for these funds will undoubtedly by high. To ensure you're ready to apply, register for an account beginning at 9 a.m. Eastern on April 30. (Registration isn’t necessary if you’re applying through a POS.) You should also review the RRF program guide, RRF FAQs and sample application form and gather your supporting documentation.
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Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.