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Restaurant Revitalization Fund
The SBA Restaurant Revitalization Fund Begins Accepting Applications Monday, May 3rd
The American Rescue Plan Act established the Restaurant Revitalization Fund (RRF) to provide funding to help restaurants and other eligible businesses keep their doors open. This program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.
For the first 21 days that the program is open, the SBA will prioritize funding applications from businesses owned and controlled by women, veterans, and socially and economically disadvantaged individuals. Following the 21 days, all eligible applications will be funded on a first-come, first-served basis. Further the SBA has created a $9.5 billion set-aside to serve the smallest businesses and ensure the equitable distribution of relief.
How is the Restaurant Futures Loan Program different from the SBA’s Restaurant Revitalization Fund (RRF)?
To qualify for the SBA RRF program:
- You must show a decline in gross receipts:
- The main calculations of this program is specifically designed to recover for the losses experienced in 2020.
- Calculation 1: for applicants in operation prior to or on January 1, 2019:
- 2019 gross receipts minus 2020 gross receipts minus PPP loan amounts
- Calculation 2: for applicants that began operations partially through 2019:
- (Average 2019 monthly gross receipts x 12) minus 2020 gross receipts minus PPP loan amounts
- Calculation 3: for applicants that began operations on or between January 1, 2020 and March 10, 2021 and applicants not yet opened but have incurred eligible expenses:
- Amount spent on eligible expenses between February 15, 2020 and March 11, 2021 minus 2020 gross receipts minus 2021 gross receipts (through March 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.
- If you cannot demonstrate a loss or decline in gross receipts, the Restaurant Futures Loan Program may be a better fit for your business.
- You must not have filed for Chapter 7, 11, 12, or 13 bankruptcies in the past:
- If you have filed bankruptcy in the past and it has been discharged over one year, you may qualify for the Restaurant Futures Loan Program.
Interested in learning more about the SBA’s Restaurant Revitalization Fund? Watch Here.
Or Register Today for a live webinar on May 3rd at 1 PM EST.