Restaurant Revitalization Fund releases $ 28.6 billion to restaurants, bars, breweries and bakeries which, if used correctly, do not have to be reimbursed
Eating establishments, including bars, restaurants, food trucks, breweries, bakeries, and wineries, are eligible for up to $ 10 million through funding made available through the American Rescue Plan . The United States Small Business Association on Monday released application information and guidelines regarding funding that does not need to be repaid if protocols are followed.
The US bailout established the Restaurant Revitalization Fund to help restaurants and other foodservice-related businesses stay open after the economic hardships endured during the COVID-19 pandemic. The program will provide businesses with funding equal to their lost revenue from the pandemic of up to $ 10 million per business and no more than $ 5 million per physical location.
Recipients are not required to repay funding until funds are used for qualifying uses by March 11, 2023. Uses include commercial mortgage expenses, rent payments, construction of outdoor seating, or purchase. masks and other safety equipment.
Here’s everything business owners need to know about the Restaurant Revitalization Fund and how to apply.
Who can apply?
- Food stalls, food trucks, food carts
- Bars, lounges, lounges, taverns
- Snack and soft drink bars
- Bakeries, whose on-site sales to the public represent at least 33% of gross receipts
- Breweries, tasting rooms, taprooms, which have on-site sales to the public that represent at least 33% of gross receipts
- Breweries and / or microbreweries, whose on-site sales to the public represent at least 33% of gross receipts
- Cellars and distilleries, whose on-site sales to the public represent at least 33% of gross receipts
- Hostels, which have on-site sales to the public that account for at least 33% of gross revenue
- Facilities or licensed premises of a producer of alcoholic beverages where the public can taste, taste or purchase products
How to register
Businesses can apply through a Small Business Association recognized point-of-sale catering partner or directly online when the program launches in the coming weeks. The SBA will establish a web portal for all applications.
An example of application can be found here.
The application will require the following documents:
- Verification of tax information: IRS form 4506-T, completed and signed by the applicant. Applicants can complete this form online on the SBA platform to meet this requirement.
- Raw receipt documents, including one of the following documents to demonstrate gross receipts and, if applicable, qualifying expenses: business income tax returns (IRS 1120 or IRS 1120-S form); IRS Form 1040 Schedule C; IRS Form 1040 Schedule F; For a partnership: IRS form 1065 of the partnership (including K-1); Bank statements; Financial statements prepared externally or internally, such as income statements or income statements – point-of-sale report (s), including IRS Form 1099-K
- Breweries, tasting rooms, taprooms, breweries, wineries, distilleries, bakeries and inns must provide documentation indicating that on-site sales represented at least 33% of gross revenue for 2019. For businesses which opened in 2020, the applicant’s original business model should have included at least 33% of gross revenue from on-site sales to the public.
When to apply
The Small Business Administration plans to launch the within the next two weeks. Previously, the ASB will establish a seven-day pilot period for the application portal and conduct in-depth awareness and training activities.
The pilot period will be used to resolve technical issues prior to the public launch. Pilot project participants will be randomly selected from existing PPP borrowers in priority groups and will not receive funds until the application portal is open to the public.
After the announcement of an official launch date, the first 21 days of the program will be dedicated to “priority” companies. After the 21 day period, all eligible applicants are encouraged to submit applications.
Priority companies are defined as companies owned at least 51% by one or more people who are women, veterans or socially and economically disadvantaged people. The SBA defines socially disadvantaged people as people who have been subjected to racial or ethnic prejudice or cultural prejudice.
The SBA defines economically disadvantaged people as people whose ability to compete in the free enterprise system has been diminished due to diminished capital and credit opportunities relative to others in the same industry. who are not socially disadvantaged.
What funding is available?
The Restaurant Revitalization Fund includes $ 28.6 billion in funding.
The program includes $ 5 billion for applicants whose gross receipts in 2019 do not exceed $ 500,000. An additional $ 4 billion is set aside for applicants with 2019 gross receipts between $ 500,001 and $ 1,500,000. Another $ 500 million is set aside for applicants whose gross receipts for 2019 do not exceed $ 50,000.
Program funding cannot exceed $ 10 million in total and $ 5 million per location. The minimum reward is $ 1,000.
For applicants opened before January 1, 2019, the payment calculation is 2019 gross receipts minus 2020 gross receipts minus Paycheck Protection Program loan amounts.
For businesses that only partially operated in 2019, the payment calculation is the 2019 average monthly gross revenue multiplied by 12, then subtract the 2020 gross revenue and PPP loan amounts.
For businesses that started their activities between January 1, 2020 and March 10, 2021 or applicants who have not yet opened but have incurred eligible expenses, the calculation is the amount spent on eligible expenses between February 15, 2020 and March 11, 2021 minus 2020 gross revenue minus PPP loan amounts.
Authorized uses for funds
If used correctly, Restaurant Revitalization Fund funds do not need to be repaid.
If the funding is used for subsequent business expenses, the money is essentially a grant.
- Company salary costs, including sick leave
- Payments on any commercial mortgage bond
- Company rent payments (this does not include prepayment of rent)
- Corporate debt service, principal and interest (this does not include any prepayment of principal or interest)
- Commercial utility payments
- Business maintenance costs
- Outdoor seating construction
- Commercial supplies, including protective equipment and cleaning materials
- Business food and beverage expenses, including raw materials
- Supplier costs covered
- Business operating expenses