The latest COVID-19 stimulus bill includes a separate relief fund called the RESTAURANTS Act, which sets aside approximately $28 billion for a Small Business Administration (SBA) grant program that helps support the food and drinks service industry impacted by pandemic shutdowns. Dubbed the Restaurant Revitalization Fund (RRF), applicants must consider a few key details before submitting applications, including the covered period, what constitutes an eligible entity, and how to apply.
Here’s what you need to know about this vital funding.
Qualifying restaurants can apply using this link.
Note: This blog was originally published in March 2021 and has been updated to reflect new information released by the SBA.
The RESTAURANTS Act is a component of the American Rescue Plan Act of 2021, which was signed into law on March 11, 2021. It established a $28.6 billion package—known as the Restaurant Revitalization Fund (RRF)—that provides a critical lifeline to the food and drinks service industry by covering the amount an organization lost in revenue due to the pandemic.
The bill can be read in full here.
Eligible organizations are permitted to use the tax-free funding from the RRF to cover eligible expenses incurred from Feb. 15, 2020, to Dec. 31, 2021, (or a date later determined by the SBA).
The SBA is authorized to provide funding up to $5 million per location, not to exceed $10 million total for the applicant and any affiliated businesses. The minimum award is $1,000.
The SBA says that eligible entities include any ...
Additionally, organizations that received loans using the Paycheck Protection Program (PPP) are eligible. However, the maximum sum of the possible grant funding subtracts the amount spent through the PPP.
Likewise, according to the National Restaurant Association, some organizations aren't eligible to receive funding through the RRF. These include:
According to the SBA, grant funding can be used to pay for the following:
If an organization fails to spend all of the grant funding—or an organization goes out of business before this period concludes—they are required to return the unused funds. The SBA also confirms that recipients aren't required to repay the funding as long as the granted funds are used on eligible expenses by March 11, 2023.
Once the program officially opens, organizations can submit grant applications online using SBA Form 3172 through the administration’s website at SBA.gov or through an SBA-recognized Point of Sale Restaurant Partner.
Eligible recipients must verify tax information using IRS Form 4506-T. Additionally, entities must submit gross receipts documentation to determine payment calculations.
Qualifying entities can apply using this link.
Grant funding is determined using the following calculations:
Additionally, the SBA states that under the RRF, gross receipts does not include:
The SBA announced that users can register for the Restaurant Revitalization Fund application portal beginning on Friday, April 30, 2021, at 9 a.m. ET while applications will open on Monday, May 3, 2021, at noon ET. To learn more about how the program works, refer to the SBA's Restaurant Revitalization Funding Program guide.
Additionally, the department will prioritize providing grants to small businesses owned and operated by women, veterans, and/or socially or economically disadvantaged individuals for the first 21 days. To learn more about other ARPA provisions, review this BerniePortal blog.