The Small Business Administration is about to open the portal for The American Rescue Plan Act that has established the Restaurant Revitalization Fund (RRF). We are encouraging food service and hospitality industry operators to prepare to apply. This is a grant and funds will not need to be repaid. Here are some basic simple steps to prepare your applications, these applications can officially be submitted on Monday, May 3 but log in and obtain credentials with the SBA can be done Friday April 30th. (Owners and operators should note, in the portal’s first 21 days, the SBA will prioritize businesses owned and controlled by women, veterans, and socio-economically disadvantaged people.)
Here are the key points of eligibility to apply for an RRF grant:
- $1,000 minimum and up to $5 million dollars.
- No more than 20 units of same ownership can apply for the grant money.
- You must still be open for business.
- Your business can not be publicly traded.
- Cannot be a not-for-profit.
- If you are in bankruptcy, limited ability to apply for the RRF grant.
- Previous PPP loans does not mean ineligibility.
- Fund usage requirements will be similar to PPP loans.
- Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.
WHAT DO YOU NEED TO PREPARE TO FILE?
Option reports to prove your sales comparisons from 2019 v 2020
- POS system report from 2019 and 2020 that you can print, scan, and create a PDF showing your total gross revenues from each year.
- Use your tax returns from 2019 and 2020 forms 1120 or 1120S; forms 1040 C or 1040 F
- Bookkeeper report that shows your 2019 and 2020 sales/prepared financial statements (even Quick Books-type reporting will work.)
- Do not include any PPP, local or state monies in your revenue numbers for 2020.
- Application form 3172.
- CPA comfort letter not required but is helpful.
There is ZERO RISK in applying for these dollars. Application for RRF funding is a no-brainer. Rely on our restaurant consultants’ expertise if you are confused, do not have time, or need answers. For a one-time fee of $1,000, an NRC consultant will complete your application filed correctly the first time ensuring you a great spot in line. If, for some reasons, your restaurant does not receive your RRF money or the SBA runs out of money for this program, there is no charge for our services. Contact a restaurant consultant now!