Restaurant Revitalization Fund
The American Rescue Plan Act established the Restaurant Revitalization Fund (RRF) to provide funding to help restaurants and other eligible businesses. This program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. 

Who Can Apply?

Eligible entities who have experienced pandemic-related revenue loss include:

  • Restaurants
  • Food stands, food trucks, food carts
  • Caterers
  • 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

Funding Amount

  • For applicants in operation prior to or on January 1, 2019, the amount of the grant will be equal to 2019 gross receipts minus 2020 gross receipts minus PPP loan amounts.

  • For applicants that began operations partially through 2019, the amount of the grant will be equal to average 2019 monthly gross receipts x 12 minus 2020 gross receipts minus PPP loan amounts.

  • For applicants that began operations on or between January 1, 2020 and March 10, 2021 and applicants not yet opened but have incurred eligible expenses, the amount of the grant will be equal to the amount spent on eligible expenses between February 15, 2020 and March 11, 2021 minus 2020 gross receipts minus 2021 gross receipts (through March 11, 2021) minus PPP loan amounts.

SBA may provide funding up to $5 million per location, not to exceed $10 million total for the applicant and any affiliated businesses. The minimum award is $1,000.

Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.

Application Process

How to apply:

Eligible businesses may apply:

  • Directly via SBA in a forthcoming online application portal at  restaurants.sba.gov
  • SBA-recognized Point of Sale Restaurant Partners (for those who use one of SBA’s POS Restaurant Partners)
  • By calling the SBA at (844) 279-8898 (only for use by those who do not have internet access).

A sample application is available here: SBA Form 3172

Please note the final version of applications and online portal have not yet been activated.

When to apply:

The application portal is expected to launch in the next two weeks, there will be two separate periods for different groups of applicants once the official launch date is announced:

  • Priority Period (Days 1 through 21): SBA will accept applications from all eligible applicants, but only process and fund priority group applications. Priority groups are small businesses owned by women, veterans, or socially and economically disadvantaged individuals. 

  • Open to All Applicants (Days 22 through funds exhaustion): SBA will accept applications from all eligible applicants and process applications in the order in which they are approved by SBA.

          How the Funds can be used?

Funds may be used for specific expenses including:

  • Business payroll costs (including sick leave)
  • Payments on any business mortgage obligation
  • Business rent payments (note: this does not include prepayment of rent)
  • Business debt service (both principal and interest; note: this does not include any prepayment of principal or interest)
  • Business utility payments
  • Business maintenance expenses
  • Construction of outdoor seating
  • Business supplies (including protective equipment and cleaning materials)
  • Business food and beverage expenses (including raw materials)
  • Covered supplier costs
  • Business operating expenses

Additional Information

For more information on the Restaurant Revitalization Funding Program, Click here for access to the SBA's Restaurant Revitalization Funding Program guide.





As always, we will keep you informed on all the important updates to the latest legislations SBA and the Treasury continue to release new rules and guidance. Please don't hesitate to contact one of us or reach out to our COVID-19 team at covid19@mggcpa.com should you have any questions. Take care and stay safe.


Our 2020-2021 tax planning guide:https://www.webtaxguide.net/MGGCPA/




Disclaimer:
This newsletter is based on interpretation of the ARPA released on March 11, 2021. Your judgement and interpretations of the Act may be necessary. This alert is provided for information purposes only and does not constitute accounting and tax advice. Please contact your MGGGY LLP accountant for additional assistance



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