SBA sets opening dates for Restaurant Revitalization Fund
The US Small Business Administration has announced the opening dates for the highly anticipated Restaurant Revitalization Fund (RRF).
Registrations for the $ 28.6 billion program will open at 9 a.m. ET on April 30, and doors will open for applications from noon ET on May 3.
In anticipation of the opening of the application window on May 3, the ASB advised eligible entities to familiarize themselves with the application process in advance. Specific recommended steps include:
- Opening an account in advance on sba.gov starting Friday, April 30, 2021 at 9 a.m. ET.
- Review official guidelines, including the program guide, frequently asked questions, and a sample application.
- Prepare the required documentation.
- Work with a point of sale provider or visit sba.gov to submit an application to open the application portal. (Note: If an applicant works with a point-of-sale salesperson, they do not need to pre-register with the site.)
- Participate in a virtual training webinar.
Restaurants and other food suppliers hit hard by the COVID-19 pandemic have been eagerly awaiting direct help to help them recover after more than a year of government-imposed closures and dramatic reductions in sales. The FRR will provide restaurants with grants equal to their lost revenue from the pandemic, up to $ 10 million per business and no more than $ 5 million per physical location.
All eligible restaurants will be able to submit applications as soon as the program opens, but during the first 21 days the SBA will prioritize reviewing applications from small businesses owned by women, veterans, and the socially and economically disadvantaged. .
After the first 21 days, the SBA will fund all eligible applications on a first come, first served basis, so the agency recommends that all eligible entities submit applications as soon as the portal opens.
The entities eligible for the RRF are as follows:
- Food stands, food trucks and food carts;
- Bars, lounges, lounges and taverns;
- Snack bars and non-alcoholic drinks;
- Bakeries, breweries, tasting rooms, taprooms, breweries, microbreweries, wineries and distilleries in which on-site sales to the public account for at least 33% of gross receipts;
- Hostels in which on-site sales of food and beverages to the public represent at least 33% of gross receipts; and
- Facilities or licensed premises of a producer of alcoholic beverages where the public can taste, taste or purchase products.
How to register
Eligible businesses can apply through SBA-recognized third-party point-of-sale providers or directly through the SBA using the online application portal.
Registration on SAM.gov is not required and DUNS or CAGE credentials are not required to apply for funding.
An example of a request form is available for download for companies wishing to prepare their application. The form will be completed online, but the SBA is asking companies not to submit forms at this time.
To verify tax information, companies will need to submit IRS form 4506-T, Request for transcription of the income tax return, completed and signed by the applicant. This requirement can be met by completing this form on the SBA platform.
For gross receipts and documentation relating to eligible expenditure, one of the following documents may be submitted:
- Business income tax returns (IRS form 1120, U.S. corporate income tax return, or IRS form 1120-S, U.S. tax return for an S corporation);
- IRS Form 1040, Personal Income Tax Return in the United States, Annex C, Business profit or loss; IRS Form 1040, Schedule F, Profit or loss of agriculture;
- For a partnership, the IRS 1065 form of the partnership, U.S. Refund of Partnership Income (including K-1 forms, Partner’s share of income, deductions, credits, etc.);
- Bank statements;
- Financial statements prepared externally or internally, such as income statements or income statements; and
- Point of sale reports, including IRS Form 1099-K, Payment card and third-party network transactions.
Eligible breweries, tasting rooms, taprooms, breweries, wineries, distilleries and bakeries will be required to submit documentation proving that on-site sales to the public accounted for at least 33% of gross revenue for 2019. This may include the forms of the Tax and Trade Office. 5130.9 or TTB. For businesses that opened in 2020, the applicant’s original business model should have considered at least 33% of gross revenue from on-site sales to the public.
Eligible hostels will be required to provide documentation showing that on-site food and beverage sales to the public accounted for at least 33% of gross revenue for 2019. For businesses that opened in 2020, the applicant’s original business model should have considered at least 33% of gross receipts from on-site sales to the public.
During the first 21 days of the application period, the SBA will only process and fund applications if the applicant has self-certified that they meet the eligibility criteria for a small business owned at least 51% by women, veterans, or socially and economically disadvantaged people. Socially disadvantaged people are defined as those who have been subjected to racial or ethnic prejudices or cultural prejudices because of their identity as a member of a group without regard to their individual qualities.
Economically disadvantaged people are defined as socially disadvantaged people whose ability to compete in the free enterprise system has been compromised due to diminished capital and credit opportunities relative to other people in the same industry. activities that are not socially disadvantaged.
Funding details and calculations
The program includes $ 5 billion earmarked for applicants with 2019 gross receipts of $ 500,000 or less; an additional $ 4 billion earmarked for applicants with 2019 gross receipts between $ 500,000 and $ 1.5 million; and an additional $ 500 million set aside for applicants with 2019 gross receipts of $ 50,000 or less.
The SBA can provide funding of up to $ 5 million per location, without exceeding $ 10 million for the applicant and affiliated companies. The minimum reward is $ 1,000. The payment calculations are:
- Calculation 1. For applicants active before or on January 1, 2019: 2019 gross revenue minus 2020 gross revenue minus Paycheck Protection Program (PPP) loan amounts.
- Calculation 2. For applicants who started their activities partially until 2019: (Average monthly gross receipts of 2019 multiplied by 12) minus the gross receipts of 2020 minus the PPP loan amounts.
- Calculation 3. For applicants who started their activities on or between January 1, 2020 and March 10, 2021, who have not yet opened but have incurred eligible expenses: Amount spent on eligible expenses between February 15, 2020 and March 11 2021, less Gross revenue 2020 and 2021 (until March 11, 2021) less PPP loan amounts.
Entities that started their activities partially until 2019 can choose to use Calculation 2 or Calculation 3.
The funds can be used for specific expenses, including:
- Company wage costs, including sick leave;
- Payments on any commercial mortgage bond;
- Company rent payments, not including prepayment of rent;
- Corporate debt service, both principal and interest, excluding any early repayment of principal or interest;
- Commercial utility payments;
- Business maintenance expenses;
- Construction of outdoor seating;
- Business supplies, including protective equipment and cleaning materials;
- Company food and beverage costs, including raw materials;
- Supplier costs covered; and
- Business operating expenses.
For the purposes of this program, gross receipts do not include:
- Amounts received from first or second draw PPP loans;
- Amounts received from economic disaster loans (EIDL);
- Advances on EIDL (EIDL advance and targeted EIDL advance);
- State and local grants; or
- SBA Section 1112 Payments.
SBA Call Center Support is available at 844-279-8898, Monday through Friday, 8 a.m. to 8 p.m. ET. Applicants can also get help through their local SBA district office.
AICPA experts discuss the latest PPP programs and other small business support programs at a virtual town hall held every two weeks. The webcasts, which provide CPE credits, are free for AICPA members and $ 39.99 for non-members. To go to the AICPA Town Hall Series web page for more information and to register. Recordings of Town Hall events can be viewed free of charge at AICPA Television.
the AICPA Paycheck Protection Program Resources Page houses resources and tools produced by the AICPA to help cope with the economic impact of the coronavirus.
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– Ken tysiac ([email protected]) is the JofAeditorial director of, and Jeff drew is a JofA editor-in-chief.