Restaurant Revitalization Fund (RRF)
The SBA has announced that they will be rolling out a new COVID-19 funding opportunity specifically targeted to help restaurants that were impacted by the Coronavirus Pandemic. This initiative is titled the Restaurant Revitalization Fund (RRF) and is available to restaurants, bars, and similar establishments designed for on-site purchase and consumption of food or beverages.
These funds will be issued as a grant that does not need to be repaid as long as the funds are spent on qualifying expenses within a set timeframe (a concept similar to the PPP structure). More details regarding the time frame and the eligible uses of funds are provided below.
The funding amount is calculated differently depending on the date when the business commenced operations.
For businesses that began operations prior to January 1, 2019 the amount of funding will be calculated in a two-step format:
- Subtract the entity’s 2020 Gross Receipts from its 2019 Gross Receipts. These figures exclude any funds received through PPP, EIDL, or EIDL Advances.
- Subtract the total of any First Draw or Second Draw PPP funding that the entity received (regardless of whether it was received in 2020 or 2021). The resulting amount is the total of qualified funding under the RRF.
For businesses that began operations in 2019, the funding is calculated slightly differently:
- Divide the 2019 Gross Receipts as reported on the 2019 Federal Tax return by the number of months that the business was in operation in 2019.
- Multiply this number by 12 to obtain the average monthly Gross Receipts for the entity.
- Subtract the 2020 Gross Receipts from the average monthly Gross Receipts figure.
- Subtract any First Draw or Second Draw PPP funding received (regardless of whether it was received in 2020 or 2021).
The resulting amount is the total qualified funding under the RRF.
For businesses that began operations in 2020 or 2021, the funding is based on eligible expenses less 2020 Gross Receipts AND any First or Second Draw PPP received.
If the SBA approves the application and issues funding, the funds must be used in the following eligible categories:
- Business payroll (including insurance benefits)
- Business rent, utility, and mortgage payments (principal & interest, but NOT prepayments)
- Business maintenance expenses
- Construction of outdoor seating
- Business cleaning supplies & PPE
- Business Food & Beverage purchases
- Any ordinary business operating expenses incurred as a part of normal operations and are necessary to carry on the business.
The funds must be used in their entirety by March 11, 2023, or, if the business permanently closes before then, the date of closure will be the termination date of the covered period. Businesses that are already permanently closed are ineligible to apply or receive funding as a part of the RRF.
For the first three weeks of the program, the SBA will prioritize issuing funds to eligible businesses owned at least 51% by women, veterans, and/or socially & economically disadvantaged individuals. After that period, the program will be open equally to all applicants.
If you would like to see if you are eligible for this funding opportunity or would like help applying, please fill out our 24 hours request form! An associate will contact you within 24 hours!