The Small Business Administration (SBA) Office will soon begin disbursing targeted aid to one of the hardest-hit sectors of the U.S. economy. The $28.6 billion Restaurant Revitalization Fund (RRF), authorized by the March stimulus bill, will soon start taking applications for grants designed to equal a venue’s pandemic losses.
Eligible small businesses can apply for funding equal to their pandemic-related revenue loss up to $10M per business and no more than $5M per physical location.
If you run a bar, restaurant, bakery, food truck, or catering outfit in need of help, you should start gathering documentation now and apply starting May 3, 2021.
Join the SBA South Florida District Office for a brief introduction to the Restaurant Revitalization Fund Grant program.
The video will feature the available information on the RRF grant including eligibility and use of funds.
– Supplemental documents
– Application process
– Who can apply
– How to apply
– When to apply
– Set asides
– Funding amount
– Allowable use of funds
What types of entities are eligible?
- 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
Establishments must also certify that “current economic uncertainty makes this funding request necessary to support the ongoing or anticipated operations.”
What types of entities are ineligible?
- Permanently closed establishments
- Publicly traded companies (but franchisees are eligible)
- An entity that owns and operates — together with affiliated businesses — more than 20 locations, whether under the same or multiple names.
- Venues that have a received a Shuttered Venue Operators grant or that have an application pending
- Venues that have filed for Chapter 7 bankruptcy or that are liquidating under Chapter 11.
- Venues that have filed for Chapter 11, 12, or 13 bankruptcy but don’t have approved reorganization plans are also ineligible.
Restaurants that are temporarily closed are still eligible for funding.
What are the eligible expenses?
- Payroll (including health care)
- Rent and utilities, mortgage obligations (including principal and interest)
- Outdoor dining builds and other construction costs
- Supplier costs
- Operational expenses
- Paid sick leave
- Any other expenses that the SBA administrator “determines to be essential to maintaining the eligible entity,” according to the March stimulus bill.
When can eligible businesses apply?
The Restaurant Revitalization Fund will open the application portal starting May 3. All eligible businesses are encouraged to apply that date.
The first 21 days of the program will prioritize businesses run by women, veterans, or people from economically and socially disadvantaged groups. After the 21-day priority period, all other eligible venues will be open to apply. The SBA will specifically set aside $5 billion for food businesses earning not more than $500,000 per year; $4 billion to mid-sized venues taking in $501,000 to $1.5 million annually; and $500 million to establishments making under $50,000
How can you apply?
The U.S. Small Business Administration announced the first round of technology partners participating in a new initiative for the RRF – a program that will allow eligible restaurants and other food establishments to access the RRF application or data they need to fill out the application through their trusted point-of-sale (POS) service providers: Clover ®, NCR Corporation, Square, and Toast
While SBA encourages applicants to use the approved POS ecosystem, applicants without access to point-of-sale service providers can submit their applications electronically at restaurants.sba.gov