Potential applicants can now apply for Restaurant Revitalization Fund (RRF) grants by registering and opening up accounts, announced the SBA. The process will begin starting April 30, 2021, from 9:00 a.m. EDT. While the actual applications may be submitted starting Monday May 3, 2021, at noon EDT. The online application will be kept open to any eligible establishment until all of the $25 billion of available funds is exhausted.
As a part of the deal, the SBA will prioritize funding applications from businesses owned and controlled by women, veterans, and socially and economically disadvantaged individuals for the first 21 days that the program is open. However, it is firmly advised by the authority that all eligible applicants submit applications as soon as the online application portal opens. Once the first 21 days are over, all eligible applications will receive funding on a first-come, first-served basis.
For better preparation, the SBA suggests that the 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. EDT.
- Interpreting the official guidance, including program guide, frequently asked questions, and application sample.
- Getting ready with 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 available here.
Funding details and calculations
$5 billion will be set aside under this program for applicants with 2019 gross receipts of $500,000 or less. An additional $4 billion will be set aside for applicants with 2019 gross receipts from $500,000 to $1.5 million; and an additional $500 million set aside for applicants with 2019 gross receipts of $50,000 or less.
The SBA may issue funding of up to $5 million per location, not to exceed $10 million for the applicant and any affiliated businesses. The minimum award is set for $1,000.
Calculations for payment are:
- Calculation 1. For applicants in operation before or on Jan. 1, 2019: 2019 gross receipts minus 2020 gross receipts minus Paycheck Protection Program (PPP) loan amounts.
- Calculation 2. For applicants that began operations partially through 2019: (Average 2019 monthly gross receipts times 12) minus 2020 gross receipts minus PPP loan amounts.
- Calculation 3. For applicants that began operations on or between Jan. 1, 2020, and March 10, 2021, that have not yet opened but have incurred eligible expenses: Amount spent on eligible expenses between Feb. 15, 2020, and March 11, 2021, minus 2020 gross receipts minus PPP loan amounts.
Entities that began operations partially through 2019 may elect to use either Calculation 2 or Calculation 3.
Funds may be used for specific expenses, including:
- Business payroll costs, including sick leave;
- Payments on any business mortgage obligation;
- Business rent payments, not including prepayment of rent;
- Business debt service, both principal and interest, not including 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; and
- Business operating expenses.
For purposes of this program, gross receipts do not include:
- Amounts received from first- or second-draw PPP loans;
- Amounts received from Economic Injury Disaster Loans (EIDL);
- Advances on EIDL (EIDL Advance and Targeted EIDL Advance);
- State and local grants; or
- SBA Section 1112 payments.