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April 29, 2021 | Posted in:

Prepare Your Restaurant Revitalization Fund Application Now

Last month, the American Rescue Plan Act designated $28.6 billion for restaurants and other food and beverage businesses as we work to recover from the COVID-19 pandemic. Just this week the SBA released the final Restaurant Revitalization Fund grant program details and application information. Since registration begins on Friday, April 30, restaurant business owners need to act fast.
 



 

Contact Us Now

    Request Assistance with the RRF Application
    You can also call Angela Venti at (856)685-6728.

    What is the Restaurant Revitalization Fund (RRF)?

    View our past article for the full background information and calculation details on this new SBA grant program for restaurants, caterers, and more food and beverage businesses.
     
    Restaurant applicants can apply directly through the SBA for up to $5 million per location (capped at $10 million total) in grants, with a minimum award of $1,000. The funds must be spent on eligible expenses incurred between February 15, 2020 and March 11, 2023. Any remaining funds at the end of the covered period must be returned. If a business that receives grant funds permanently closes before March 11, 2023, the covered period will end when the business permanently closes.
     

    Who is eligible for the Restaurant Revitalization Fund (RRF)?

    The eligibility for the grants has been updated in recent SBA guidance. The business must have had at least 33% gross receipts be onsite food and beverage sales in 2019. The full list includes:

    • Restaurants
    • Caterers
    • Food stands, food trucks, food carts
    • 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
    • An applicable franchise as long as they are listed in the SBA Franchise Directory

     
    Applicants must be one of the following forms of organization:

    • C-Corporations
    • S-Corporations
    • Partnerships
    • Limited Liability Companies
    • Sole Proprietors
    • Self-Employed Individuals
    • Independent Contractors
    • Tribal Businesses
    • LLC taxed as S-Corporations, or Sole Proprietors

     

    Ineligible food and beverage businesses include publicly-traded companies, a state or local government-operated business, nonprofits, an entity with more than 20 locations, and if they have a pending application or received funds from the Shuttered Venue Operators Grant. Note that entity re-organization for purposes of qualification for the 21-day priority  period will result in automatic disqualification.

    All applicants must certify that current economic uncertainty makes the funding request necessary to support ongoing or anticipated operations.

     

    What is the Restaurant Revitalization Fund Application Process?

     

    View Our In-depth Video on the Restaurant Revitalization Fund Updates and Application Tips


     

    How and when to get started:

    Registration for an account for the Restaurant Revitalization Fund will begin nationwide at 9:00am EST on Friday, April 30, 2021. You must register before applying.

    • If you use a SBA partner Point-of-Sale vendor including Square, Toast, NCR, or Clover, you will be able to register with them. The SBA will keep an online list of applicable POS partners.
    • If you do not use one of the above apps, register at http://restaurants.sba.gov.

    The application portal will open nationwide on Monday, May 3, 2021 at 12:00pm EST. The application will remain open until all $28.6 billion in funding has been secured. The first 21 days of the application opening are reserved for socially or economically disadvantaged businesses and those owned and operated by women and veterans. However, every eligible business is to apply on Monday, May 3 regardless of this exclusivity period. Following the 21-day exclusivity period, the rest of the applications will be processed on a first-come, first-served basis.

     

    Documents needed:

    • SBA Form 3172 Application. You may access the paper copy of this application now to review or may complete it digitally when the application opens. Note that the online application is significantly more user-friendly than the paper version and will provide prompts to fill in the necessary information as well as auto-fill capabilities.
    • IRS Form 4506-T. This signed form will allow the SBA to review your tax transcripts. The information on this form must match your tax returns.
    • Gross Receipts backup. This list varies depending on the grant calculation that applies to your business and situation. Consult with your CPA on exactly which backup information you will need. Documents may include:
      • 2019 and/or 2020 Business tax returns (IRS Form 1120 or IRS Form 1120-S);
      • IRS Form 1040 Schedule C; IRS Form 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;
      • 2020 Point of sale report(s), including IRS Form 1099-K;
      • CPA Comfort Letter and/or 941 payroll returns for a new business;
      • Proof of 33% of gross receipts in onsite sales to the public

    Some documents may speed up the process while others could take the SBA up to two weeks to review.

     

    Next Steps:

    The SBA advises applicants to consult with their CPA and accounting professionals for the best chance at a complete and well-documented application. It is important to prepare ahead of time as an incomplete application or missing documentation will cause your RRF application to be rejected. If you have to restart the application in that case, the process resets to the beginning. Since funds are first come, first served, this puts your chance of receiving the grant at risk. If you are in process of applying for PPP funds, you must complete the PPP application prior to the RRF application.

     

    Contact Us

    Throughout this past year, Alloy Silverstein’s accountants and advisors have remained on top of all the relief programs to help struggling businesses. For direct assistance, even over the weekend, please call Angela Venti at 856-685-6728 or email solutions@alloysilverstein.com.
     

      Request Assistance with the RRF Application
      You can also call Angela Venti at (856)685-6728.

      Author:

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