What to Know About the SBA Restaurant Revitalization Fund
The Restaurant Revitalization Fund is part of the American Rescue Plan Act and provides $28.6 billion in grants to restaurants, bars, and other establishments that sell food and beverages.
The portal opens on Friday, April 30th to register to put in an application on Monday, May 3rd. This money will go fast and it is important that you register on Friday, April 30th, and put your application on Monday, May 3rd to have the best chance at receiving money. The timeline is as follows:
• Friday, April 30th register on the portal: You must register prior to being able to submit your application
• Monday, May 3rd put in your application. Download a Sample Application here.
• Days 1 through 21 the SBA will accept applications from all eligible applicants, but the only process and fund priority group applications.
Who is in the priority group?
Small businesses that are at least 51% owned and controlled by individuals who are women, veterans, and/or socially and economically disadvantaged individuals (those who identify as minority or members of LQBTQ communities, see the SBA for the best information.)
Days 22 through fund exhaustion the SBA will accept applications from all eligible applicants and process applications in the order in which they are approved by the SBA (This is why you want to apply on Monday, May 3rd even if you are not in the priority group.)
Who Can Apply?
If your 2020 sales plus any relief funds (PPP 1st and 2nd Round) is less than your 2019 sales you are eligible to apply. You also must be a restaurant, food stand, food truck, food cart, caterer, bar, saloon, lounge, tavern, taproom, brewpub, brewery, winery, and distilleries, that at least 33% of gross sales come from onsite sales. Snack Bars, bakeries are also eligible.
What Can the Funds Be Used For?
Funds must be spent by March 2023 and can be spent on equipment purchases and upgrades, including POS! Payroll Cost, Business Rent & Mortgage, Business Debt Service, Business Utilities, Business Food & Beverage Expenses, including raw materials, Business Maintenance and Expense, Construction of Outdoor Seating, Business Supplies and Supplier Cost, Business Operating Cost, so pretty much anything related to operating your business.
Acceptable documentation of gross receipts include:
• Business Tax Returns (IRS Form 1120 or IRS 1120-S
• IRS Forms 1040 Schedule C; IRS Forms 1040 Schedule F
• For A Partnership: Partnerships IRS Form 1065 (including K-1’s)
• Bank Statements
• Externally or Internally Prepared Financial Statements such as Income Statements or Profit and Loss Statements
• Point Of Sale Reports, including IRS Form 1099- K
For additional information, click here.