What You Need to Know about the Restaurant Revitalization Fund
The RRF will offer $28.6 billion in grants to hard-hit restaurants and bars, with restaurants able to apply for grants based on lost revenue. Additionally, $5 billion of that total will be set aside expressly for businesses with 2019 gross receipts of less than $500,000.
JUST ANNOUNCED: Restaurants will not be required to acquire a
System of Award Management (SAM) number to apply.
Join us for a free virtual event with experts from the National Restaurant Association, and the SBA. They will be live on hand to explain the fund in more depth, outline steps for the application process, and will take questions.
Restaurant Revitalization Fund Webinar
Wednesday, April 14, 2021 | 3:00 PM
*Please email Jina Miniard if you're interested in participating in the webinar and she will forward you the Zoom link
Panelists:
- Aaron Frazier, Director of Healthcare and Tax Policy, National Restaurant Association
- Thomas Todt, District Director, Alabama District Office, U.S. Small Business Administration
- Suzanne Darden, University of Alabama and the Alabama SBDC, Business Advisor for the SBA Capital Access Program
Additional Info on Fund Eligibility:
Who is eligible?
Most American restaurants and bars that lost revenue in 2020 versus 2019 will be eligible to apply for RRF grants. The ARPA explicitly names the following types of establishments that should be eligible: “restaurant, food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting room, taproom, licensed facility or premise of a beverage alcohol producer where the public may taste, sample, or purchase products.” However, any restaurant or bar that is part of a publicly-traded company or owned by a state or local government is not eligible to apply. Also, owners that operate more than 20 restaurants are ineligible. Notably, if you are the owner of a franchise and you do not control more than 20 locations, you are likely eligible to apply.
How and when can I apply?
The Small Business Administration (SBA) will administer and disperse the RRF grants, but the program does not yet have an official launch date as of mid-March 2021. Those interested in obtaining RRF grants should keep a close eye on the
SBA’s COVID-19 relief options web portal.
How much can I get from the grant program?
Generally speaking, restaurants can apply for grants that are equal to 2020 gross revenue minus 2019 gross revenue. For businesses in operation for all of 2019 and 2020, the maximum grant size will be $5 million for restaurants and $10 million for restaurant groups. Grant funds will not be taxed like income.
If a restaurant was not operating for all of 2019, the maximum grant value is the average monthly gross receipts in 2020 minus the average monthly gross receipts in 2019. If a restaurant was not in operation for all of 2020, it could potentially receive a grant that totals the amount of “eligible expenses” put into the business to date.
What can the grants be used for?
- Payroll costs.
- Payments of principal or interest on any mortgage obligation.
- Rent payments, including rent under a lease agreement.
- Utilities.
- Maintenance, including new outdoor seating construction.
- Supplies, including PPE and cleaning materials.
- Food and beverage inventory.
- Covered supplier costs.
- Operational expenses.
- Paid sick leave.
- Any other expense SBA says is essential to maintain operations.
FAQ from the National Restaurant Association:
UnderstandingRRF.pdf (restaurantsact.com)
