The SBA has released further guidance on the Restaurant Revitalization Fund Grants (RRF). Don’t get too excited, applications are still not being accepted. Instead, a Program Guide and Sample Application (SBA Form 3172) has been released.
Here's the gist:
- Restaurants, bars, breweries, wineries, caterers, food trucks/stands, bakeries, distilleries and inns are all eligible entities if they receive at least 33% of gross receipts from the onsite sale of food and beverage to the public.
- In general, here is the equation you use to determine how much funding you are eligible for:
- 2019 gross receipts – 2020 gross receipts – PPP loan amounts = Funding Amount
- PPP, EIDL, and state/local grants do not count towards gross receipts.
- Pandemic-related revenue loss up to $10M/business, no more than $5M per location
- Repayment not required if used for eligible expenses before March 11, 2023
- Eligible expenses include rent, mortgage payments, payroll, debt service, utilities, maintenance, supplies, supplier costs, food and beverage expenses, operating expenses and even construction of outdoor seating expenses.
- Applications will be accepted directly through the SBA via an online portal or SBA recognized Point of Sale Restaurant Partners.
- You will need IRS Form 4506-T to verify tax information (available digitally on SBA platform) and documentation of gross receipts.
- There will be a priority period where all applications will be accepted, but only those from priority groups will be processed (Days 1-21)
- Priority groups are self-certified small businesses owned by women, veterans, or socially/economically disadvantaged owners.
If you’re interested in viewing these documents or reviewing more specifics, go to
www.sba.gov/restaurant. There, you can also sign up to receive updates on the program as they are released.
As always, you can join me every Wednesday, at noon, for my Unpacking the SBA Aminar's.