The Restaurant Revitalization Fund (RRF) will provide financial relief for eligible restaurants and related food and beverage service businesses with $28.6 billion of tax-free federal grants if their revenue in 2020 was less than their revenue in 2019. The Small Business Administration (SBA) is the administrator of the RRF and has announced that its RRF application portal is now open. A program guide for the RRF is available here.
Registration and application are a two-step process. Applicants must first register so that they can prepare and submit their applications to the SBA beginning on Monday, May 3, 2021. Registration and application forms are available on the SBA website here.
Restaurants, food stands, food trucks, food carts, caterers, saloons, inns, taverns, bars, lounges, bakeries, brewpubs, tasting rooms and taprooms that earned at least a third of their revenues from the sale of food and beverages consumed on site; licensed facilities or premises of beverage alcohol producers where the public may taste, sample, or purchase products; and other similar places of business in which the public or patrons assemble for the primary purpose of being served food or alcohol, will be eligible for grant proceeds. Franchisees of franchise systems with more than 20 units are eligible if their franchisors are currently listed on theSBA Franchise Directory.
Grants will be available if gross revenue in 2020 was less than gross revenue in 2019. For businesses not in operation for all of 2019, the maximum grant will be the annualized average monthly gross revenue for 2019 less the annual gross revenue in 2020.
Businesses not in operation for all of 2020 could potentially receive a grant equal to the amount of eligible expenses invested in the business to date.
Grants cannot exceed $10 million per entity or $5 million per location and will be reduced by amounts previously received under the Paycheck Protection and Economic Injury Disaster Loan programs.
The RRF will operate on a first-come, first-served basis and it is likely that the funds will be depleted quickly. Consequently, eligible business owners should register, prepare their applications and submit the required documentation for the SBA with their applications on May 3 or as soon as possible thereafter.