Restaurant Revitalization Fund
The Restaurant Revitalization Fund (RRF) (or click here for program guide in Spanish) was launched by the SBA to help restaurants and other eligible for-profit businesses keep their doors open. This program will provide restaurants with funding equal to their pandemic-related revenue loss up to $5 million per location, not to exceed $10 million total for the applicant and any affiliated businesses. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.
The Application Process
The RRF application opened on Monday May 3rd at noon EST, and businesses are able to access the RRF application or data they need to fill out the application through SBA-recognized Point of Sale Restaurant Partners Clover, NCR Corporation, Square, and Toast or directly through the SBA at restaurants.sba.gov. The SBA added that if an applicant is working with a point-of-sale vendor, they do not need to register on the site; and recommended that business owners get started immediately by compiling needed information and materials.
Calculating The Grant Amount
Funding awards will be calculated based on three categories of applicants:
For applicants in operation prior to or on January 1, 2019, award is calculated as 2019 gross receipts minus 2020 gross receipts minus PPP loan amounts
For applicants that began operations partially through 2019, award is calculated as (Average 2019 monthly gross receipts x 12) minus 2020 gross receipts minus PPP loan amounts
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, award is calculated as amount spent on eligible expenses between February 15, 2020 and March 11,2021 minus 2020 gross receipts minus PPP loan amount
Entities who began operations partially through 2019 may elect to use either calculation 2 or calculation 3. Keep in mind that gross receipts do not include:
Amounts received from Paycheck Protection Program (PPP) loans (First Draw or Second Draw)
Amounts received from Economic Injury Disaster Loans (EIDL)
Advances on EIDL (EIDL Advance and Targeted EIDL Advance)
State and local grants (via CARES Act or otherwise)
SBA Section 1112 payment
Cross Program Eligibility and Prioritizing Small Businesses
Check out the SBA’s Cross-Program Eligibility Guide for further detail on how funding support from other programs impact award calculation.
To ensure that the smallest businesses and those in under-served communities receive funding awards, SBA has set-aside a minimum of $9.5 billion for smaller businesses. Further, SBA will prioritize awarding funds to small businesses at least 51 percent owned and controlled by individuals who are women, veterans, and/or socially and economically disadvantaged individuals.
For some additional guidance and information, we recommend you check out the RRF webinar led by our colleagues at the Albany SBDC.