Restaurant Revitalization Fund

What is the RRF?

The American Rescue Plan Act established the Restaurant Revitalization Fund (RRF) to provide funding to help restaurants and other eligible businesses keep their doors open. This program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.

Am I eligible?

Eligible entities that have experienced pandemic-related revenue loss include:

• Restaurants
• Food stands, food trucks, food carts
• Caterers
• Bars, saloons, lounges, taverns
• Snack and nonalcoholic beverage bars
• Bakeries (onsite sales to the public comprise at least 33% of gross receipts)
• Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts)
• Breweries and/or microbreweries (onsite sales to the public comprise at least 33% of gross receipts)
• Wineries and distilleries (onsite sales to the public comprise at least 33% of gross receipts)
• Inns (onsite sales of food and beverage to the public comprise at least 33% of gross receipts)
• Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products

What can a RRF loan be used for?

Funds may be used for specific expenses including:

• 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
• Business operating expenses

How much can I receive?

SBA may 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.

How do I calculate my loan amount?

There are three possible payment calculations.

Calculation 1: for applicants in operation prior to or on January 1, 2019:

• 2019 gross receipts minus 2020 gross receipts minus PPP loan amounts

Calculation 2: for applicants that began operations partially through 2019:

• (Average 2019 monthly gross receipts x 12) minus 2020 gross receipts minus PPP loan amounts

Calculation 3: for applicants that began operations on or between January 1, 2020 and March 10, 2021 and applicants not yet opened but have incurred eligible expenses:

• Amount spent on eligible expenses between February 15, 2020 and March 11, 2021 minus 2020 gross receipts minus 2021 gross receipts (through March 11, 2021) minus PPP loan amounts

For those entities who began operations partially through 2019, you may elect (at your own discretion) to use either calculation 2 or calculation 3.

When can I apply?

The application portal opens Monday, May 3rd at 12 p.m. EDT.

For the first 21 days that the program is open, the SBA will prioritize funding applications from businesses owned and controlled by women, veterans, and socially and economically disadvantaged individuals. All eligible applicants are encouraged to submit applications as soon as the portal opens. Following the 21 days, all eligible applications will be funded on a first-come, first-served basis.

How do I apply?

You can apply through SBA-recognized Point of Sale Restaurant Partners or directly via SBA in a forthcoming online application portal.

What can I do to get ready to apply?

In preparation, the SBA recommends qualifying applicants familiarize themselves with the application process in advance to ensure a smooth and efficient application experience, specifically by:

• Registering for an account in advance at sba.gov starting Friday, April 30, 2021, at 9 a.m. EDT.
• Reviewing the official guidance, including program guide, frequently asked questions, and application sample.
• Preparing the required documentation.
• Working with a point-of-sale vendor or visiting sba.govto submit an application when the application portal opens. [Note: If an applicant is working with a point-of-sale vendor, they do not need to register beforehand on the site.]

What additional documents will be necessary for the application?

• Verification for Tax Information: IRS Form 4506-T, completed and signed by Applicant. Completion of this form digitally on the SBA platform will satisfy this requirement.
• Gross Receipts Documentation: Any of the following documents demonstrating gross receipts and, if applicable, eligible expenses
  • Business tax returns (IRS Form 1120 or IRS 1120-S)
  • IRS Forms 1040 Schedule C; IRS Forms 1040 Schedule F
  • For a partnership: partnership’s IRS Form 1065 (including K-1s)
  • Bank statements
  • Externally or internally prepared financial statements such as Income Statements or Profit and Loss Statements
  • Point of sale report(s), including IRS Form 1099-K

For applicants that are a brewpub, tasting room, taproom, brewery, winery, distillery, or bakery:

• Documents evidencing that onsite sales to the public comprise at least 33.00% of gross receipts for 2019, which may include Tax and Trade Bureau (TTB) Forms 5130.9 or TTB. For businesses who opened in 2020, the Applicant’s original business model should have contemplated at least 33.00% of gross receipts in onsite sales to the public.

For applicants that are an inn:

• Documents evidencing that onsite sales of food and beverage to the public comprise at least 33.00% of gross receipts for 2019. For businesses who opened in 2020, the Applicant’s original business model should have contemplated at least 33.00% of gross receipts in onsite sales to the public.

Need more information?

For more information visit: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/restaurant-revitalization-fund