Restaurant Revitalization Grants ready to roll soon

The Small Business Administration has announced that registrations for the $28.6 billion Restaurant Revitalization Fund grants will open at 9 a.m. EST Friday, April 30, with the application officially open at noon EST Monday, May 3. The online application will remain open to any eligible establishment until all funds are exhausted.

If you plan to apply, we recommend you:

  • Register for an account in advance of the application period opening on Monday. You can start the registration process by visiting restaurants.sba.gov (If you are working with a point-of-sale vendor, you do not need to register. Just complete an application when the portal opens).
  • Review the official guidance, frequently asked questions and application sample (links included below)
  • Prepare the required documentation
  • Work with a point-of-sale vendor or submit an application at restaurants.sba.gov when the application portal opens Monday.

Remember, the first 21 days after the program launches will be reserved for small businesses owned by women, veterans and socially and economically disadvantaged individuals. After that three-week period, grant applications will be open for all eligible business owners.

Who is eligible:
Entities that own a place of business where patrons assemble for the primary purpose of being served food or drink, including a:

  • Restaurant,
  • Food stand, food truck, food cart;
  • Snack and nonalcoholic beverage bar;
  • Caterer;
  • Bar, lounge, saloon, tavern
  • An inn*;
  • Brewery, brewpub, microbrewery, taproom, tasting room*;
  • Bakery*;
  • Winery*;
  • Distillery*;
  • Licensed facility of a beverage alcohol producer where the public may taste, sample or purchase products;

*Eligibility for these facilities may be limited. Please see the Small Business Administration’s website for more details.

What are the eligibility criteria?

  • An entity that as of March 13, 2020, owns or operates (together with any affiliated business) fewer than 20 locations, regardless of whether those locations do business under the same or multiple names.
  • An entity that has not received a Shuttered Venues Operations Grant or has an application pending.
  • An entity not permanently closed or that has filed for bankruptcy.
  • An entity that was not open prior to January 1, 2020, could still be eligible to apply for eligible expenses incurred in preparing to open.

What is the covered period?

  • The period beginning February 15, 2020, and ending December 31, 2021.

How much can each entity receive in grant funds?

  • Grants may be awarded up to $10 million per entity or $5 million per physical location. The minimum award is $1,000.

How are grants calculated?

  • Grant amounts for applications in operation prior to or on January 1, 2019, are calculated by subtracting 2020 revenue from 2019 revenue and subtracting any amount received in Paycheck Protection Program loans.

[2019 revenue] – [2020 revenue] – [PPP loans] = Grant Fund

  • Grant amounts for applications that began operations partially through 2019 are calculated by taking the average 2019 monthly revenue times 12 and subtracting 2020 revenue minus PPP loans.

[Average 2019 monthly revenue x 12] – [2020 revenue] – [PPP loans] = Grant Fund

  • Grant amounts for applicants who began operations on or between January 1, 2020, and March 10, 2021, and applicants not yet opened but who have incurred eligible expenses are calculated by the amount spent on eligible expenses between February 15, 2020, and March 11, 2021, minus 2020 revenue minus PPP loan amount.

[Eligible expense] – [2020 revenue] – [PPP loans] = Grant Fund
What can RRF grant funds be used for?

  • 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; and
  • Business operating expenses.

How do I apply?
The SBA will open an online application portal. Click here for a sample application.

What documents are needed to accompany the application?

  • IRS Form 4506-T (Verification for Tax Information);
  • Gross receipts documentation including any of the following:
    • Business tax return;
    • Form 1040 Schedule C or Schedule F;
    • Form 1065;
    • Bank statements;
    • Externally or internally prepared financial statements;
    • Point of sale report(s), including Form 1099-K

Please contact our office if you need any assistance or further information.

Nicole Bishop is a Manager with our Business & Tax Advisory Group. She can be reached at nbishop@antarescpas.com.