What You Need To Know To Receive Restaurant Revitalization Funds

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Updated 04/28/2021

SBA Restaurant Revitalization Fund Quick Facts

  • This is a relief effort targeted directly at the restaurant industry
  • The American Rescue Plan Act (ARPA) became public law on March 11, 2021 and established the RRF appropriating $28.6 billion
  • Most hospitality entities who receive at least 33% of gross receipts from onsite food and beverage
  • Can receive up to $5 million per location
  • For any company that opened before 2020 you will take the difference in your 2019 gross receipts from your 2020 gross receipts minus your PPP loan and this is the money you will get. Companies opened during or after 2020 are still eligible just there are additional steps that need to be taken
  • Enrolment has not opened yet but is expected to after April 30th but no official date has been set
  • Majority ownership of woman, veterans, and people who are socially and financially disadvantaged will be picked first then it will open to all.
  • APPLY ASAP as funds will be exhausted quickly
  • Get all of your paperwork in line so that you can apply ASAP

Am I Eligible?

Eligible entities are businesses that are not permanently closed and include businesses where the public or patrons assemble for the primary purpose of being served food or drink

Eligible entities are:

  • Restaurants
  • Food stands, food trucks, food carts
  • Caterers
  • Bars, saloons, lounges, taverns
  • Snack and nonalcoholic beverage bars (e.g., coffee shops, ice cream shops)
  • 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
  • Other similar places of business in which the public or patrons assemble for the primary purpose of being served food or drink

All entities listed above that do not have an asterisk are presumed to have greater than 33% onsite in 2019 food and beverage sales

There may be additional requirements that need to be met so feel free to visit the SBA website for the most up to date information.

How Much Money Do I Qualify For?

Eligible Uses of Funds

The funds must be spent on expenses that were/are incurred between February 15, 2020 and March 11, 2023

Expenses qualified for the funds are:

  • Payroll costs of business (including sick leave)
  • Utility payments of business
  • Maintenance expenses of business
  • Supplies of business (including protective equipment and cleaning materials)
  • Business food and beverage expenses (including raw materials)
  • Covered supplier costs
  • Business operating expenses (insurance, marketing, fees, licenses, legal, POS equipment, etc.)
  • Construction of outdoor seating. * Expansion costs are ineligible.

Business debt that is qualified for the funds are:

  • Payments on any business mortgage obligation (both principal and interest)
    • This does not include any prepayment of principal or interest
  • Business debt service (both principal and interest)
    • This does not include any prepayment of principal or interest

How to Calculate How Much Money You Would Receive

 

Applicants in operation prior to or on January 1, 2019

2019 Gross Receipts minus 2020 gross receipts minus PPP loan amounts

Ex: $1,000,000 (2019) - $400.000 (2020) - $200,000 (PPP) = $400,000.00 in funds

 

Applicants that began operations partially through 2019
Average 2019 monthly gross receipts x 12 minus 2020 gross receipts minus PPP loan amounts

EX: $60,000.00 (Avg 2019 Monthly for months open) X 12 = $720,000

$720,000 (2019) - $400,000 (2020) – $200,000 (PPP) = $120,000.00 in funds

 

Applicants that began operations on or between January 1, 2020 and March 10, 2021 and Applicants not yet opened but have incurred eligible expenses as of March 11, 2021

Total amount spent on eligible expenses between February 15, 2020 and March 11, 2021 minus 2020 and 2021 gross receipts minus PPP loan amounts.

EX: $1,000,000 (Expenses) - $400,000 (2020) - $120,000 (2021) - $200,000 (PPP) = $230,000 in funds

 

There may be additional requirements that need to be met so feel free to visit the SBA website for the most up to date information.

How Do I Apply?

Registration for the SBA application portal will begin on Friday, April 30, 2021, at 9 am ET. Applications will open on Monday, May 3, 2021, at noon ET. The Small Business Administration has released a sample application and a guide to filling it out to help restaurateurs prepare to apply when the application window opens.
restaurants.sba.gov

What Documentation Do I Need?

  1. Application: SBA Form 3172, completed, initialed, and signed. Completion of this form digitally on the SBA Grant Platform will satisfy this requirement.
  2. Verification for Tax Information: IRS Form 4506-T, completed and signed by Applicant. Completion of this form digitally on the SBA Grant Platform will satisfy this requirement.
  3. Gross Receipts Documentation: Any of the following documents demonstrating gross receipts and, if applicable, eligible expenses:
    1. Business tax returns (IRS Form 1120 or IRS Form 1120-S)
    2. IRS Form1040 Schedule C
    3. IRS Form 1040 Schedule F
    4. For a partnership: partnership's IRS Form 1065 (including K-1s)
    5. Bank statements
    6. Externally or internally prepared financial statements such as Income Statements or Profit and Loss Statements
    7. Point of sale report(s), including IRS Form 1099-K.

When Can I Apply?

  • Pilot Period: Pilot Period participants will be randomly selected from existing PPP borrowers who self identified as members of RRF priority groups. Pilot participants will not receive funds until RRF is open to the public at application launch.
  • Priority Period: Days 1-21 - During the initial 21-day Priority Period, SBA will accept applications from all eligible Applicants. Only applications from small businesses owned by women, veterans, and socially and economically disadvantaged Applicants will be funded during this period.
  • Day 22: All eligible applications will be processed and funded until program funds are exhausted.

Do You Have Additional Questions?

Any current FPOS Group Inc. customers should reach out to their sales representative for more help on applying for your funds. If you do not know who your sales representative is please contact FPOS Group and a specialist will be assigned to you.

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However, if you are not a current FPOS Group Inc. customer and would like more information on how we save our customer’s time and money please click the link below to set up a demonstration from our staff.

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