The SBA announced more details on the Restaurant Revitalization Fund (RRF) grant program this week. If you have a food/beverage business please make sure you understand this program from top to bottom. In this blog post, I will lay out the most important information you need to know prior to applying for the grant.
Important Dates
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Registering for an account can be done at sba.gov starting Friday, April 30, at 9 AM EDT.
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If you plan to apply through Square or Toast you do not need to register beforehand
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The application portal will open on Monday, May 3, at 12:00 PM EDT.
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For the first 21 days of the program, applications from those in priority groups will be processed exclusively. A small business that is at least 51% owned by one or more individuals in the following groups will get priority:
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Women
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Veterans
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Socially and economically disadvantaged (see SBA website for definitions)
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Regardless of your priority status, we strongly encourage all business owners to apply as soon as the portal opens on Monday as we expect funds allocated to this program will be claimed very quickly.
Documentation Requirements
You should have the following documents available prior to starting the application:
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Business tax returns from 2019 and 2020, either:
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1120 for C Corps; 1120-S for S Corps; 1065, including K-1’s for partnerships
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IRS Form 1040, Schedule C for single member LLCs
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PPP Loan Information (First and Second Draw, as applicable)
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EIDL Loan and Advance Information (as applicable)
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Financial Statements (2019 and 2020)
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Point-of-sale reports (2019 and 2020)
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Bank Statements (if you cannot prove gross receipts any other way)
How to Apply
You can apply one of three ways:
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Through a recognized SBA Restaurant Partner
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Partners currently listed include Square, Toast, Clover, NCR Corporation (Aloha)
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Through SBA directly at restaurants.sba.gov
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On the phone (844-279-8898)
How Much Can I Get?
The calculation for this grant is fairly straightforward. The sample application does a good job laying out a couple different scenarios based on when you business began operations. Below I will lay out the steps you will follow assuming you were in business prior to 2019. If your business started in 2019 or after, please review the sample application for more details on the calculation that applies to your business.
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Obtain your 2019 gross receipts as reported on your tax return
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Obtain your 2020 gross receipts as reported on your tax return
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Do not include any amounts received from a PPP loan, SBA Section 1112 debt relief payments, EIDL loans or advances, or state and local small business grants
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Obtain the total amount of your PPP loans (regardless of when you received the loans).
I think it is easier to digest how this works with some numbers. Let’s assume that your gross receipts in 2019 were $1,000,000. Your gross receipts in 2020 were $500,000. You were able to secure PPP loans of $300,000 during 2020 and 2021. The calculation would look like this:
How Can I Use This Grant?
The short answer is almost anything that relates to standard operations. You also have until March 11, 2023 to use any dollars you get from this program. Below is summarized list of eligible expenses:
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Payroll
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Rent and Utilities
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Debt (no prepayments)
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Construction of Outdoor Seating
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Business supplies, including protective equipment and cleaning supplies
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Business food and beverage expenses
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Covered supplier costs (see rules)
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Business operating expenses (see rules)
The RRF program is a fantastic opportunity for the restaurant industry. The program has virtually no downside or risk. Any dollars you receive can be used for operations and they will not be taxable at the federal level. If you have seen a decline in revenue in 2020 that was not fully supplemented by the PPP program I would be first in line on Monday, May 3, at noon EDT!
