RRF Registration and Portal Opening; Important Information for Qualifying Applicants
Registration for the Restaurant Revitalization Fund (RRF) will begin Friday, April 30 at 9 a.m. EDT and SBA will begin accepting applications via the application portal on Monday, May 3 at 12 p.m. EDT. The application portal will remain open to any eligible establishment until all funds are exhausted.
Funds must be used for eligible uses through March 11th, 2023. If the business closes before then, all funds must be used prior to closing or given back if not all funds were used.
28.6 billion was set aside for this fund.
Eligible businesses could receive up to 5 million per location but not exceed a total of 10 million per applicant.
The minimum amount funded is $1,000.
Businesses do not have to be registered to SAM.gov or have a DUNS or CAGE identifier (which was some requirements for other SBA funds).
Any PPP funding will be subtracted from the final funding amount.
The business needs to use the same EIN, ITIN, or SSN used for PPP application.
If applying for this fund, an applicant has to withdraw any outstanding PPP applications (cannot apply with PPP application still pending).
After funds have been exhausted, the business needs to provide a detailed expenditure report and certification for the required period.
Who is eligible?
Businesses not permanently closed and began operations prior to 3/10/2021 that serve food and drink (C-corps, S-corps, LLC’s, Partnerships, Sole Props, Self-employed, and Franchises). A business could have been temporarily closed at some point or still temporarily closed.
Coffee shops/ice cream parlors
Bakeries (gross receipts must be at least 33% food/beverage in 2019)
Wineries/breweries (gross receipts must be at least 33% food/beverage in 2019)
*All others are presumed to have more than 33% food/beverage sales
Who is ineligible?
State/local government operated businesses
If owned more than 20 locations as of 3/13/2020 regardless if those locations do business under same/different name
Pending and accepted application for Shuttered Venue Operations Grant
Publicly traded companies
Permanently closed companies
If funding is not at least $1,000
How to calculate potential fund amount:
Method #1: Applicants in operation prior to or on January 1st, 2019
2019 gross receipts minus 2020 gross receipts minus PPP loan amounts
Method #2: Applicants that began operations partially through 2019
Average 2019 monthly gross receipts times 12 minus 2020 gross receipts minus PPP loan amounts
Method #3: Applicants that began operations on or between January 1st, 2020 and March 10th, 2021 and applicants not yet opened but have incurred eligible expenses as of March 11th, 2021 (applicants that fall under calculation #2 can also use this calculation method but it will take longer).
Total amount spent on eligible expenses between February 15th, 2020 and March 11th, 2021 minus 2020 and 2021 gross receipts minus PPP loan.
**What to exclude from 2020 gross receipts
• PPP Loan
• SBA 1112 payments
• EIDL Loan/Advance
• Any state or local grants
How to apply (Available, Monday, May 3 at 12 p.m. EDT)
Apply directly on the SBA platform https://www.sba.gov/funding-programs/loans/covid-19-relief-options/restaurant-revitalization-fund
Through your POS vendor’s website (if the SBA has collaborated with them)
By telephone at 1-844-279-8898
Documents needed to apply:
Gross receipts documentation
Business tax returns – 2019 and 2020 (if 2020’s tax return is not filed yet, you can also submit signed, dated, and certified Income Statements but this will take longer to process)
3 months of bank statements – for all calculation methods (these can be the most recent bank statements)
POS reports including any 1099’s
For calculation method #3 the following expense documentation is necessary:
CPA comfort letter
Invoices/payments if spend money on outdoor seating expenses
Lender loan statements for any business debt paid
Documents for any of the businesses that have to show at least 33% food/beverage sales must provide proof, unlike the other presumed businesses.
For more information visit: the SBA or subscribe to RAC's News & Information blog here our website for updates.