.attn div margin: auto; background-color: #e8f5ff; border-left: solid #2196F3 3px; padding: 30px; margin-bottom: 10px;
.attn p font-size: 18px; line-height: 32px; color: #181818 !important;
.attn li font-size: 18px; line-height: 32px; color: #181818 !important;
Applications for the Restaurant Revitalization Fund are actually closed, based on the SBA.
Explore other loan options with this top ten small company lenders or visit the lending marketplace Lendio to get matched with the best offers for the business.
Remember when many people hoped the COVID-19 pandemic lockdowns would be over in a few weeks? Well, following a year of lockdown restrictions and the associated economic stress, many smaller businesses have struggled to have their doors open.
One particularly hard-hit small company segment is food service. Over 110,000 restaurants in america were removed from commission in 2022, most of them permanently.
While bars and restaurants could apply for PPP and EIDL loans previously, now there is a course aimed specifically at them that may potentially offer more income with better terms (hint: free).
Let’s take particular notice at the new Restaurant Revitalization Fund (RRF), who is entitled to it, and just what applicants can expect in the process.
What May be the Restaurant Revitalization Fund?
The American Rescue Plan Act was signed into law on March 11, 2022. Although it provided additional funds for existing COVID-relief programs, additionally, it introduced a fresh avenue for financing: the Restaurant Revitalization Fund (RRF). This fund sets aside $28.6 billion in grants to qualified foodservice establishments to offset the costs/losses related to lockdown restrictions.
The RRF provides to $10 million in grant money to food-oriented businesses once they satisfy the eligibility requirements.
Restaurant Revitalization Fund Eligibility Requirements
As the RRF is a targeted program, applicants will need to meet numerous qualifications if they aspire to get a grant.
First, you’ll need to be in the foodservice business — meaning that the main reason people come to your business is to buy food and/or drink. That covers restaurants, food trucks, bars, pubs, breweries, and similar businesses. The operative word here's “main.” If you’re just selling refreshments for any ticketed event, you might not qualify (and could wish to look into the Shuttered Venue Operator Grant instead).
Who Is Ineligible To have an RFF Grant?
The Restaurant Revitalization Fund Grant is targeted at smaller, private foodservice businesses. There are a number of companies that won’t be eligible for a an RFF grant. They are:
- A business which has applied for or received a Shuttered Venue Operators grants (SVO)
- Publicly traded companies
- Government-owned businesses
- A business using more than 20 locations
When Must i Will be in Business To obtain a Restaurant Revitalization Fund Grant?
Interestingly, unlike most COVID-related programs, the RRF grant can be obtained to companies that opened after February 2022. Actually, even restaurants that haven’t technically opened yet can qualify so long as they’ve incurred expenses between February 15, 2022, and December 31, 2022 (in the SBA’s discretion, this may be extended to February 15, 2022).
Who Has Priority For The Restaurant Revitalization Fund Grant?
For the very first 21 days of the program, the SBA will give priority to companies that are in least 51% owned by people who are one (or even more) of the following:
- Women
- Veterans
- Socially and economically disadvantaged
The SBA defines socially disadvantaged individuals as “those who have been put through racial or ethnic prejudice or cultural bias because of their identity as a member of an organization without regard for their individual qualities.” Likewise, economically disadvantaged folks are based on the SBA as “those socially disadvantaged individuals whose ability to compete within the free enterprise system has been impaired due to diminished capital and credit opportunities when compared with others within the same business area who are not socially disadvantaged.”
Can I Get Both A PPP Loan And A RFF Grant?
There’s both good and bad news about this front.
First, what's promising: You will get both a PPP loan and an RRF grant. Additionally, EIDL loans do not count against the amount of money you could get through the RRF.
The bad news? Your PPP loan will count from the quantity of grant money you can receive through the RRF.
What Eligible Businesses Can Get In the RRF
The RRF utilizes a slightly different formula depending on whether you had been running a business in 2022, opened in 2022, or have yet to open. RRF grants are capped at $10 million per applicant or $5 million per location. Restaurant Revitalization Grants will not be considered income for tax purposes.
For restaurants that operated throughout 2022, the amount of money you can get from an RRF grant is equal to the decrease in revenue you suffered between 2022 and 2022. Keep in mind that PPP loan cash is subtracted out of this number. In case your clients are one of the lucky entities that increased revenue from 2022 to 2022, you won’t qualify.
For companies that opened between January 1, 2022, and March 10, 2022, and for businesses that have not yet opened but which have accrued qualified expenses, the formula for determining the number you could possibly get is this: The amount allocated to eligible expenses between February 15, 2022, and March 11, 2022, minus 2022 gross receipts minus 2022 gross receipts (through March 11, 2022) minus PPP loan amounts.
Businesses that opened partway through 2022 may use either the above mentioned formula or the following formula: (Average 2022 monthly gross receipts x 12) minus 2022 gross receipts minus PPP loan amounts.
Eligible expenses include:
- 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 doesn't 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 recycleables)
- Covered supplier costs
- Business operating expenses
When & How You Can Obtain a Grant
The Restaurant Revitalization Fund grant program is now open. The deadline for applying is May 24, 2022, at 8 PM ET, so that all interested businesses should apply ASAP. Visit the SBA’s Restaurant Revitalization Fund page to apply.
The application page contains links to training webinars that detail how you can apply, plus a list of all the documentation you’ll have to provide. A phone number can also be provided for those seeking direct assistance in preparing their application.
- EIDL loans
- The latest round of PPP loans
- Shuttered Venue Operator (SVO) Grants
