SBA Recently Released a Sample Restaurant Revitalization Fund Application
On April 17, 2021, the SBA released more information regarding the Restaurant Revitalization Fund (RRF). To recap, the RRF has $28.6 billion in grant money set aside for the restaurant industry that was established by the American Rescue Plan Act. Once this program is available, restaurants will be able to apply for a grant to offset their pandemic-related revenue loss, up to $10 million per business and $5 million per physical location.
How to Apply
Restaurant owners will be able to apply through their SBA-recognized Point of Sale Restaurant Partners or online through SBA’s online application portal once available, which is expected to come in the next few weeks. In the meantime, the SBA has provided a sample application in order for you to be prepared for when the portal is opened.
The SBA also released the additional documentation that will be required to be submitted along with your application which can be found on their website here.
Who Can Apply
While this is called the Restaurant Revitalization Fund, more than just restaurants can apply for an RRF grant. The following entities that have experienced pandemic-related revenue loss are eligible to apply:
- Food stands, food trucks, food carts
- 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
When to Apply
The SBA is expected to start a pilot program during the next two weeks to test out the program. This seven-day trial will test the process using restaurants whose Paycheck Protection Program (PPP) applications indicate they may qualify for an RRF grant. The SBA specified that no funds will be distributed during this trial period.
Once the test period is complete and they are confident they can roll out the program to scale, the online portal and POS applications will be available for the first set of priority applicants.
The priority period is set for days 1 through 21. While all applicants are allowed to apply during this time, only priority applicants will be processed and funded during this time. This includes the following people:
- A small business concern that is at least 51 percent ownedby one or more individuals who are:
- Women, or
- Veterans, or
- Socially and economically disadvantaged (see below).
- Applicants must self-certify on the application that they meet eligibility requirements
- Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities.
- Economically disadvantaged individualsare those socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area who are not socially disadvantaged.
On day 22 all other eligible entities will be allowed to submit their application.
To learn more about the Restaurant Revitalization Fund, visit the SBA site. If your business needs assistance now and can’t wait for the RRF to launch, we’re here for you. We’re still lending to restaurants and other hospitality businesses across the U.S. Our local loan consultants are available to review your needs and help you find the best loan to fit your needs while you wait for your RRF grant.
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