Restaurant Revitalization Fund FAQs

***Application for eligibility is now closed. 5/24/21.

 

UPDATE (5/21): Final Call!

SBA announced that businesses have until Monday, May 24, 8 p.m. ET, to submit applications to the Restaurant Revitalization Fund

  1. The SBA still has potential set-aside funding available for eligible establishments with 2019 annual revenue of not more than $50,000
  2. Eligible establishments that meet this revenue standard of not more than $50,000 are encouraged to apply through SBA-recognized point-of-sale vendors or directly via the SBA online application portal

 

 

UPDATE: The SBA announced that the Restaurant Revitalization Fund will be open on May 3rd! You can apply through the online SBA portal, Participating POS provider ( Square, Toasts, Clover, NCR Corporation (Aloha).
Registration for the SBA application portal will begin on Friday, April 20, 2021 at 9am ET. You can create an account by clicking here.
Review the RRF program fund guidecross-program eligibility requirements, and a sample of the application you will have to fill out.

 

If you would like to receive updates about the Restaurant Revitalization Fund, please fill out this form.  

 

What is the Restaurant Revitalization Fund?
  • The Restaurant Revitalization Fund (RRF) provides direct grant support for restaurants hit hardest by the pandemic. The grant amounts are up to $10M per restaurant group or $5M per individual restaurant.
  • The Small Business Administration (SBA) is administering a total of $28.6 billion in RRF dollars to date.

 

When will applications be opened?
  • Applications are currently not live – the SBA is still developing the application along with program guidance.
  • In the meantime, there are specific steps a restaurant can take to prepare for when the application opens
  • Small business owners can follow this link to sign up to receive updates about the RRF & when Technical Assistance will begin.
  • Follow the link for FAQs from the National Restaurant Association.

 

What if I already received PPP financing?
  • The program assumes that many RRF applicants will have already received a PPP loan
  • If you are a PPP recipient and are approved for a RRF, you will need to subtract your PPP amount in your RRF grant calculation.

 

Who is eligible for the RRF?
  • All food service or drinking establishments, including:
    • Restaurants
    • Food stands, food trucks, food cars
    • Caters
    • 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 to the public comprise at least 33% of gross receipts)
    • Licensed facilities or premises of beverage alcohol producers where the public may taste, sample, or purchase products
    • Tasting rooms

 

What is the time period for expenses?
  • Incurred eligible expenses between 2/15/20 and 12/31/21

 

You are not eligible if:
  • you are part of an affiliated group with more than 20 locations, regardless of whether those locations do business under the same or multiple names
  • you are publicly traded
  • you have a pending application under the Save Our Stages program
  • you are a business operated by state or local government

 

Do certain applicants get priority?
  • The first 21 days of this grant program will prioritize veteran-, women-,socially and economically disadvantaged -owned businesses
  • $5 billion is set aside for applicants with 2019 gross receipts of not more than $500,000
  • An additional $4 billion is set aside for applicants with 2019 gross receipts from %500,001 to $1,500,000
  • An additional $500 million is set aside for applicants with 2019 gross receipts of not more than $50,000

 

How do I calculate my RRF amount? 
There are varying calculations depended on when your restaurant opened
  • For restaurants that opened pre-2019:
    • Take your 2019 gross revenue minus 2020 gross revenue, and subtract the total amount of the PPP loans (First and/or Second Draws) you received
  • For restaurants that opened in 2019:
    • Calculate the average of your 2019 monthly gross revenues, and multiply that average by 12
    • Then subtract your 2020 revenues from that total, and then subtract the total amount of your PPP loans
  • For restaurants that opened in 2020 or after:
    • Amount spent on eligible expenses between 2/15/2020 and 3/11/2021 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

 

** All of these calculations are open to further clarification by the SBA. Businesses should keep up-to-date as the SBA releases guidance to ensure their grant calculation is correct

 

What expenses are eligible?
  • 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

 

What is the covered period for these expenses?
  • Grants can be spent on eligible expenses from 2/15/20 through 12/31/21.

 

Do I have to agree to anything?
  • Recipients must certify that current conditions make the grant request necessary; that the funds will be used to retain workers, maintain payroll, and cover other eligible expenses; and that the recipient is only applying for and would only receive one grant
What if I can’t use my full fund on eligible expenses?
  • It must be returned to the government

 

Link to a sample application – here
Link to Restaurant Revitalization Fund Program Guide (created by SBA) – here
For more recent updates and to monitor visit sba.gov for the most recent updates.

Guidance on Grant Funds & Taxes

As a recipient of Cook County COVID-19 Recovery Grant Recipient/Coronavirus Relief Funds (CRF) through the county, you should have received a 1099-MISC Form from the WBDC.

If you have not received your form please email COVID19Help@wbdc.org. Please include the name of your business, the business owner’s name, and the programs you participated in.

State and local grants are ordinarily taxable for federal income purposes, and federal grants are taxable unless stated otherwise in the legislation authorizing the grant.

A business’ receipt of CRF awards generally is not excluded from gross income and therefore taxable. As such, it appears the prime recipient has a reporting obligation if the amount is above $600 and paid to a noncorporation, such as a small business, nonprofit organization, and city or county government agency.

For further inquiry on this topic, please visit the IRS’ CARES Act frequently asked questions page.

 We recommend that all small businesses consult with a CPA/accountant or check out the IRS website for in depth questions about how this impacts their taxes.