Applications for $28.6 billion Restaurant Revitalization Fund will be accepted starting at noon Monday, May 3, the U.S. Small Business Administration has announced.
The grants are for restaurants with 20 or fewer locations to help cover their pandemic-related revenue losses in 2020.
Restaurants can start registering for accounts now. 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 restaurants.sba.gov
- 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 restaurants.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.
However, all eligible applicants are encouraged to submit applications as soon as the portal opens, the SBA said. Following the 21 days, all eligible applications will be funded on a first-come, first-served basis.
Consistent with the legislation and the intent of Congress, the SBA created a $9.5 billion set-aside of the funding for small restaurants:
- $5 billion for applicants with 2019 gross receipts of not more than $500,000;
- $4 billion is set aside for applicants with 2019 gross receipts from $500,001 to $1,500,000; and
- $500 million for applicants with 2019 gross receipts not more than $50,000.
Here are some other rules to know about the Restaurant Revitalization Fund:
How Grant Amounts Are Calculated:
- Businesses that were established before January 1, 2019, can calculate their grant amount by subtracting their 2020 gross receipts (less any PPP Loans included in gross receipts) from their 2019 gross receipts.
- Businesses that were established during 2019 can receive a grant equal to the difference between:
- Average monthly 2019 gross receipts, multiplied by 12
- Average monthly 2020 gross receipts, multiplied by 12
- Businesses that were established on or after January 1, 2020, can receive a grant equal to eligible payroll expenses (2/25/20 to 3/11/21), less gross receipts (less PPP loans received) from that year (1/1/20 to 3/11/20) .
Note: There is a limit of $5 million per physical location with a maximum of $10 million for all affiliated companies and locations.
How Previous Pandemic Relief Factors in, including PPP and ERTC:
If you received a PPP #1 or PPP #2 loan, you’re required to subtract the amounts received, whether or not forgiven, from your grant request. You also cannot count any wages eligible for the Employee Retention Tax Credit.
For More Information
Applicants should also know that the grants are not included in gross income and eligible expenses paid with grants are deductible.
Get more details on the funding in our prior article New Restaurant Aid: How to Qualify for New Stimulus Funding or on the SBA website.
Please contact us with questions or for personalized assistance.