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January 10, 2021 
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0 comments SBA Restaurant Revitalization Fund Update 2024 – Restaurant Grants
The SBA announces that the start of the new Restaurant Revitalization Fund will start April 30, 2021. This new SBA Grant for Restaurants will provide up to $10 million dollars in Covid-19 financial help for small businesses that are in the foodservice industry.
LINK TO VIDEO OF DETAILS OF THE RESTAURANT REVITALIZATION FUND – https://youtu.be/uclrfnxqUVA
LINK TO SBA PORTAL FOR RESTAURANT REVITALIZATION FUND REGISTRATION – https://restaurants.sba.gov/requests/…
DISCLAIMER
This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Freedomtax Accounting and Multiservices Inc. is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience. Freedomtax Accounting and Multiservices Inc. or its members cannot be held liable for any use or misuse of this content.
The SBA press release published on 4/27/21 read as follows:
“SBA Administrator Guzman Announces Application Opening for $28.6 Billion Restaurant Revitalization Fund
Fund prioritizes direct relief to women, veterans, and socially and economically disadvantaged individuals, and includes $9.5 billion in set-asides for smaller businesses
WASHINGTON – SBA Administrator Isabella Casillas Guzman today announced the U.S. Small Business Administration will begin registrations on Friday, April 30, 2021, at 9 a.m. EDT and open applications on Monday, May 3, 2021, at noon EDT for the Restaurant Revitalization Fund. The online application will remain open to any eligible establishment until all funds are exhausted.
“Restaurants are the core of our neighborhoods and propel economic activity on main streets across the nation. They are among the businesses that have been hardest hit and need support to survive this pandemic. We want restaurants to know that help is here,”
The SBA has focused on the marketplace realities of our food and beverage businesses in designing the Restaurant Revitalization Fund to meet businesses where they are. And we are committed to equity to ensure our smaller and underserved businesses, which have suffered the most, can access this critical relief, recover, and grow more resilient.”
Established under the American Rescue Plan, and signed into law by President Joe Biden on March 11, 2021, the Restaurant Revitalization Fund provides a total of $28.6 billion in direct relief funds to restaurants and other hard-hit food establishments that have experienced economic distress and significant operational losses due to the COVID-19 pandemic. This program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Funds must be used for allowable expenses by March 11, 2023.
“Recognizing the great urgency to help restaurants keep their doors open – and with a clear mandate from Congress – the SBA worked at a breakneck speed and is excited to launch this program,” said Patrick Kelley, SBA Associate Administrator, Office of Capital Access. “From day one, we engaged with diverse stakeholders in the food industry community to make sure we built and delivered the program equitably, quickly, and efficiently.”
In preparation, the SBA recommends qualifying applicants familiarize themselves with the application process in advance to ensure a smooth and efficient application experience, specifically by:
Registering for an account in advance at sba.gov starting Friday, April 30, 2021, at 9 a.m. EDT.
Reviewing the official guidance, including program guide, frequently asked questions, and application sample.
Preparing the required documentation.
Working with a point-of-sale vendor or visiting sba.gov to submit an application when the application portal opens. [Note: If an applicant is working with a point-of-sale vendor, they do not need to register beforehand on the site.]
For the first 21 days that the program is open, the SBA will prioritize funding applications from businesses owned and controlled by women, veterans, and socially and economically disadvantaged individuals. All eligible applicants are encouraged to submit applications as soon as the portal opens. Following the 21 days, all eligible applications will be funded on a first-come, first-served basis.
SBA Restaurant Revitalization Fund Update
As the restaurant industry faces an unprecedented pandemic-related revenue loss, the SBA has stepped up to help restaurants with the announcement of the SBA Restaurant Revitalization Fund (RRF). The RRF will provide $28.6 billion in relief funds for restaurants, food stands, food trucks, caterers, and other foodservice establishments that have experienced a revenue loss due to the pandemic. Eligible restaurants can receive a grant of up to $10 million, with no requirement to pay back the funds so long as they are used for eligible expenses by March 11, 2023.
The SBA also announced the Restaurant Revitalization Fund Program (RRFP), which will provide a maximum of $169 restaurant operators with a tax credit equal to the amount of their grant award.
Overview of the SBA Restaurant Revitalization Fund
The Small Business Administration (SBA), in response to the COVID-19 pandemic, announced the Restaurant Revitalization Fund (RRF) in 2021. This fund was created under the American Rescue Plan Act of 2021 and provides $28.6 billion in grants to help restaurants and other eligible businesses that have experienced pandemic-related revenue loss.
The SBA website provides additional information on the RRF program, including eligibility requirements, allowed uses of funds, and the application portal. Eligible restaurants may apply for an RRF grant through the application portal.
Purpose of the Program
The purpose of the SBA Restaurant Revitalization Fund is to provide economic relief to restaurateurs impacted by the pandemic. The American Rescue Plan Act of 2021 allocated a total of $28.6 billion for the RRF Program, of which $10 million was disbursed to 169 eligible restaurant operators.
The RRF Program is designed to help restaurants and other eligible entities that have experienced pandemic-related revenue loss to cover eligible expenses, including payroll costs, rent, utilities, supplies, and maintenance costs. Recipients of the funds are required to report to the SBA on how much of their award has been used against each eligible use category, as well as submit supplemental documentation.
Eligibility Requirements
From the $28.6 billion set aside under the American Rescue Plan Act of 2021, the Restaurant Revitalization Fund (RRF) was created to help restaurants, food stands, food trucks, food carts, caterers, and other similar businesses that have suffered revenue losses due to the pandemic.
To be considered for the RRF grant, a business must meet the eligibility requirements. The eligibility requirements for the RRF program include:
Allotted Funds
With $28.6 billion in funds available through the SBA Restaurant Revitalization Fund (RRF), restaurant operators all across the U.S. have the opportunity to receive much-needed pandemic relief. RRF grants are meant to be used against each eligible use category within the restaurant and can include any prepayment of principal and interest on a business debt service.
These funds are available to those who apply through the RRF application portal, and those who receive funding are required to report to the SBA how much of their award has been used on eligible expenses. Award recipients must fully expend their award funding or the period of performance will expire on March 11, 2022, and all RRF funds must be used by December 31, 2023.
How to Apply for the Program
As an Executive Chef, you must be prepared to compile the required documentation to apply for the Small Business Administration’s Restaurant Revitalization Fund (RRF) Program. To be eligible, you must submit an SBA Form 3172 which will require you to report on the amount of funds received and how much of their award has been used against each eligible use category.
Additionally, you must provide supplemental documentation that displays proof of revenue loss due to the pandemic and how the funds will be used within the restaurant to pay for eligible expenses such as debt service, principal and interest, and any prepayment of principal.
Required Documentation
As the recipient of a Restaurant Revitalization Fund grant, it is important to understand the required documentation for applying to the program. The Small Business Administration requires applicants to submit documents such as a signed IRS Form 4506-T, the SBA Report for the Restaurant Revitalization Tax Credit, and the Application for the Restaurant Revitalization Fund.
Applicants must also certify that the funds are to be used against each eligible use category and that any proceeds have been used on eligible expenses within the restaurant. Furthermore, recipients are required to complete annual reporting submissions until they fully expend the award funding or the period of performance expires.
Application Process
Having gained an overview of the Restaurant Revitalization Fund, you may now be asking yourself, “How exactly do I apply for this program?” The process for applying for the SBA’s Restaurant Revitalization Fund does require some preparation. Here is an overview of what you should expect:
- Application Process
- Gather required documentation
- Prepare your application on the Restaurant Revitalization Award Portal
- Submit your application along with the required information and documentation
Application Deadline
With the clock ticking and the SBA’s Restaurant Revitalization Fund Program soon to expire, it is essential for restaurant operators to be aware of the application deadline. The SBA announced that Recipients must fully expend Award Funds prior to December 31, 2023 to use the RRF. Applications must be submitted no later than March 11, 2023, however, certain recipients may be eligible for a deadline extension.
The SBA may extend the deadline to April 30, 2023 for applicants who are:
-
Socially Disadvantaged:
- Have yet to receive funding.
- Have received funding, but have yet to use much of their Award.
-
All other applicants:
How Funds Will Be Used
The Restaurant Revitalization Fund (RRF) provides grants to help restaurants and other eligible businesses keep their doors open during the COVID-19 pandemic. Qualified uses of RRF grant money include business expenses such as payroll, rent, supplier costs, and debt service. The maximum grant amount that can be obtained is $10 million per restaurant operator, and funds are disbursed through the SBA’s Restaurant Revitalization Award Portal. Recipients are required to report how the funds are used and certify their use of funds on the application portal.
Qualified Uses
Having gone through the application process, it’s now time to discuss how funds from the Restaurant Revitalization Fund (RRF) can be used. Qualified uses of the funds include payroll, mortgage, rent, utilities, maintenance, supplies, food and beverage expenses, operational expenses, and additional expenses established in the American Rescue Plan Act of 2021.
Funds must be used to cover expenses incurred between February 15, 2020, and March 11, 2021, but cannot be used to make up for any revenue loss due to Covid-19. Additionally, RRF funds must be used within the restaurant industry, and no funds can be shared with other businesses or used for any illegal activities.
Maximum Grant Amount
With the application process clarified, it is important to understand the maximum grant amount that is available. The Restaurant Revitalization Fund (RRF) program, as stated on the Small Business Administration (SBA) website, provides up to $10 million per eligible restaurant operator.
This amount is based on the eligible restaurant operator’s pandemic-related revenue loss. To ensure these funds are used properly, RRF grant recipients must certify that the proceeds from the grant have been or will be used only against each eligible use category. These categories are outlined on the SBA application portal and include expenses such as payroll costs, mortgage payments, rent payments, debt service, and more.
How Funds Are Disbursed
As the funds are released and made available to those who qualify, it is important to understand how the funds are to be disbursed. The PPP Forgiveness Portal is a website provided by the U.S. Government to help small businesses understand how to use their grant funds. Restaurants eligible for the Restaurant Revitalization Fund (RRF) will go to the RRF Portal to apply for funds. The maximum grant amount from the RRF is $10 million.
This grant money must be used on eligible expenses, such as payroll costs, mortgage payments, debt service, rent, utilities, and supplies.
Program Requirements
The U.S. Government’s Restaurant Revitalization Fund (RRF) grants are set to help restaurants and other eligible businesses affected by the pandemic. Recipients of the RRF must adhere to the program requirements regarding acceptable use of funds, required reports, and repayment terms.
RRF grant funds must be used on eligible expenses which are outlined on the SBA website. All funds must be fully expended or used against each eligible use category no later than December 31, 2021. Recipients are also required to complete annual reporting submissions until they fully expend their award funds prior to December 31, 2023.
Acceptable Use of Funds
With the Restaurant Revitalization Fund (RRF) under the American Rescue Plan Act of 2021, a total of $28.6 billion has been allocated to help restaurants, bars, and other food and drinking establishments struggling due to the pandemic. To ensure that the funds are used in an appropriate manner, the Small Business Administration (SBA) has released clear guidelines for acceptable use of the funds.
Funds must be used to cover eligible expenses, such as payroll costs, principal and interest on mortgage obligations, rent, utilities, and other expenses. Additionally, funds may be used for any business debt service, such as principal and interest payments, that were incurred between February 15, 2020 and March 11, 2021.
Required Reports
As the recipient of the Restaurant Revitalization Fund award, you must adhere to certain program requirements to ensure the funds are used correctly. Regarding required reports, you must submit regular updates to the SBA via the application portal on how much of your award has been used and how your proceeds have been used against each eligible use category.
You must also certify that you have used the award funds prior to December 31, 2021, and will fully expend the award funding or the period of performance expires. If you have not fully expended the award funding by March 11, 2023, you must repay the funding. The SBA may ask for supplemental documentation to confirm your use of funds. Failure to submit required reports or share sensitive information can result in an audit or repayment of your funds.
Repayment Terms
Having outlined the acceptable use of funds and the required reports, repayment terms for the Restaurant Revitalization Fund (RRF) should be addressed. Recipients of the RRF should be aware that the SBA will not require repayment of the grant as long as funds are used in accordance with the RRF Program requirements.
RRF applications are available on the gov website, and the RRF Award Portal will show how much of their award has been used against each eligible use category. Recipients are asked to certify that proceeds have been used on eligible expenses and will be required to complete annual reporting submissions until they fully expend the award funding or the period of performance expires, whichever comes first.
Resources for Applicants
Resources for Applicants are available to assist in navigating the restaurant revitalization fund. The Small Business Administration (SBA) website is the definitive source for information on the program, including application portal and how much award funds can be used.
Additionally, contact information is provided to further guide applicants through the process. Other assistance programs include the American Rescue Plan Act of 2021, providing over $28.6 billion to support the restaurant industry. Recipients must certify that the proceeds have been used on eligible expenses and that funds are used against each eligible use category.
SBA Website
Having established the program requirements for the Restaurant Revitalization Fund, it is important to provide applicants with resources to help them apply for the fund. The Small Business Administration (SBA) website is a great starting point for applicants to begin their research. Using the website, potential applicants can learn about the eligibility requirements, how much funding is available, and how to use award funds.
The website also contains an application portal that allows applicants to submit an application electronically. Additionally, applicants can use the portal to track the status of their application and how much of their award has been used. The website also provides helpful tips on preparing your application and supplemental documentation if necessary. The SBA website is a great resource for applying for the Restaurant Revitalization Fund.
SBA Contact Information
To ensure that applicants have all the necessary information to successfully complete the application process, the Small Business Administration (SBA) provides various resources. Of these, SBA contact information is a key resource. The SBA has a variety of assistance programs available to eligible restaurant operators.
Applicants with questions about the application process can contact the Freedom Tax at 407-502-2400 or via email at [email protected]
The SBA reps are available to provide assistance with the application process and answer any additional questions. The SBA also provides a resource guide that includes answers to commonly asked questions about the application process. Additionally, applicants may reach out to the SBA District Offices in their area for more specific information.
Other Assistance Programs
Following the requirements outlined by the Program, there are a few other assistance programs that can help restaurant operators in need. In 2021, the American Rescue Plan Act of 2021 allocated $ 28.6 billion to the SBA Restaurant Revitalization Fund (RRF) Program to help restaurants and other eligible businesses that have been negatively impacted by the COVID-19 pandemic.
The SBA announced that 169 restaurant operators will receive a minimum of $10 million each in relief funds. Restaurant operators can use the funds against eligible expenses including business debt service, payroll, principal and interest on mortgage, rent, utilities, and other expenses related to the operation of their restaurants.
Conclusion
The SBA Restaurant Revitalization Fund (RRF) provides much-needed relief to restaurant operators who have been affected by the pandemic. Through its application portal, $28.6 billion are available for eligible restaurants to use on expenses related to the pandemic. Recipients of the funds must fully expend them by December 31st, 2021, report to the SBA on how much of their award has been used, and certify that proceeds have been used for eligible expenses.
The RRF is part of the American Rescue Plan Act of 2021 and provides a much needed lifeline for restaurant operators, helping them to get back on their feet and offering them the opportunity to succeed in 2021 and beyond.
Transcript
Good news for restaurant owners. The SBA has just announced when their restaurant funding program is going to start. So, your restaurant can get additional financial help from the SBA to help you get through this coronavirus pandemic; that’s what we’re going to talk about in this video.
Hello from Freedom Tax Accounting we’re an accounting firm where we have been providing quality tax and accounting services now for over 20 years.
We wanted to do this quick update to let you know that the SBA let me show you the SBA has just announced, with this news press release the date of the opening of their restaurant revitalization fund. If you don’t know what this fund is, it is basically a new grant program from the SBA for the foodservice industry okay. Remember that if you qualify for these funds your restaurant can get up to 10 million dollars in funding in financial help that if you use them correctly you basically don’t have to pay these funds back. So, this is basically a grant that the SBA is providing to restaurants but this funding program does have some specific rules. If you don’t know anything about how this fund program works, we have done a video in the past where we are linking that video right now on the top right of this video. And we will also put a link to that prior video that shows you the details of this fun program. We’re going to put a link to that prior video we did in the description of this video.
So, basically, the SBA just announced that they will start the registration process on Friday, April 30th but start accepting applications on Monday, May 3rd. Now, what does that mean? If you read this press release further down, basically they are saying that the first step is that you need to create an account with the SBA and they are going to start opening accounts on Friday, April 30th. And you need to go to this website right here okay. So, on Friday, April 30th you can log into this website, which will provide a link to this website on the description of this video and you need to register to start your application. If you try to do this now, it will not let you create your account. So, this process of creating your account will start on Friday, April 30th. Then after you create the account, on Monday, May 3rd, you need to log back into your account and do the actual application okay.
So, basically, that’s the process you need to do according to this SBA press release. So, once again, this is good news for restaurant owners for the food industry. Once again, if you know nothing about this funding program, we’re going to put a link to a video we did earlier this week in the description of this video, so you have the details on how much you can get through this funding program and how the grant process works okay.
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