Restaurant Revitalization Fund: SBA to Open Registration April 30
Yesterday, the SBA announced that applications will be opened beginning Friday, April 30, 2021. Registration for the program will open at 9 a.m. EST on April 30, with the doors opening for application submissions starting at noon EST on May 3. We strongly advise that companies planning to apply for a grant under the program prepare for and apply as soon as possible, as there is no assurance as to how long the funding under this program will last.
The Restaurant Revitalization Fund (RRF) relief program provides $28.6 billion in tax-free grants to help restaurants rebuild and reopen.The program will give restaurants funding equal to their pandemic-related revenue loss of up to $10 million per business, but no more than $5 million per physical location. The funds have to be used for allowable expenses by March 11, 2023.
The initial 21-day period will prioritize direct relief to women, veterans, and socially and economically disadvantaged individuals, and includes $9.5 billion in set-asides for smaller businesses. Our previous article discussed the specifics of eligibility and the application process; however, applications were not yet ready to be filed with the Small Business Administration (SBA).
In preparation for application, the SBA recommends qualifying applicants familiarize themselves with the application process in advance to ensure a smooth and efficient application experience, specifically by:
- Registering for an account in advance at restaurants.sba.gov starting Friday, April 30, 2021, at 9 a.m. EST.
- Reviewing the official guidance, including program guide, frequently asked questions, and application sample.
- Preparing the required documentation.
- Working with a point-of-sale vendor or visiting restaurants.sba.gov to submit an application when the application portal opens. [Note: If an applicant is working with a point-of-sale vendor, they do not need to register beforehand on the site.]
- Attending a live recorded virtual training webinar.
- Tuesday, April 27, 2:30 p.m. EST | Register here
- Wednesday, April 28, 1 p.m. EST | Register here
- Wednesday, April 28, 2:30 p.m. EST | Register here
Information on official guidance, sample application, funding calculations and usage and required documentation is available in our previous article.
For the first 21 days that the program is open, the SBA will prioritize funding applications from businesses owned and controlled by women, veterans, and socially and economically disadvantaged individuals. All eligible applicants are encouraged to submit applications as soon as the portal opens. Following the 21 days, all eligible applications will be funded on a first-come, first-served basis.
Eligible entities for the RRF include the following:
- Food stands, food trucks, and food carts;
- Bars, saloons, lounges, and taverns;
- Snack and nonalcoholic beverage bars;
- Bakeries, brewpubs, tasting rooms, taprooms, breweries, microbreweries, wineries, and distilleries at which on-site sales to the public comprise at least 33% of the gross receipts;
- Inns at which on-site sales of food and beverages to the public comprise at least 33% of gross receipts; and
- Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products.
There can be a lot of confusion around how to balance and apply for the various SBA programs like the first- and second-draw PPP loans, the Shuttered Venue Operators Grants, the new RRF, as well as the IRS’s Employee Retention Credit. If you would need assistance applying for any of these programs or have specific questions related to the eligibility of your business or funding calculations, BMF Advisors are here to assist.
Dale A. Ruther?>
CPA, CIT, CDS, CCIFP
James E. Merklin?>
CPA/CFF, CFE, CGMA, MAcc
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