Restaurants, bars, food trucks, caterers and other food-and-drink establishments owned by women, veterans and socially and economically disadvantaged individuals will be given a special 21-day priority window when the $28.6 billion Restaurant Revitalization Fund is launched in coming weeks, the U.S. Small Business Administration announced this weekend.
The official start date of the program still has not been announced — but that announcement is expected to be released soon. The hope is that the program will start in the coming weeks.
The fund is intended to administer funds to numerous types of food and beverage establishments (complete list below). The industry has been one of the hardest-hit during the COVID-19 pandemic.
This dedicated SBA website is the best source for up-to-date information for eligible restaurants interested in the RRF. It is available in both English at www.sba.gov/restaurants or in Spanish at www.sba.gov/restaurantes.
The SBA also announced that — ahead of the application launch and over the next two weeks — it will establish a seven-day pilot period for the RRF application portal and conduct extensive outreach and training.
The pilot period will be used to address technical issues ahead of the public launch. Participants in this pilot will be randomly selected from existing Paycheck Protection Program borrowers in priority groups for RRF and will not receive funds until the application portal is open to the public.
Following the pilot, the application portal will be opened to the public. It is at that time that the 21-day window for small businesses owned by women, veterans and socially and economically disadvantaged individuals will begin. Following the 21-day period, all eligible applicants are encouraged to submit applications.
As a reminder:
- Food stands, food trucks, food carts;
- Bars, saloons, lounges, taverns;
- Snack and nonalcoholic beverage bars;
- Bakeries (onsite sales to the public comprise at least 33% of gross receipts);
- Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts);
- Breweries and/or microbreweries (onsite sales to the public comprise at least 33% of gross receipts);
- Wineries and distilleries (onsite sales to the public comprise at least 33% of gross receipts);
- Inns (onsite sales of food and beverage to the public comprise at least 33% of gross receipts);
- Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample or purchase products.
The SBA said it may provide funding up to $5 million per location, not to exceed $10 million total for the applicant and any affiliated businesses. The minimum award is $1,000.
Here is how you can figure out the size of your potential award
Payment calculations include:
Calculation 1: For applicants in operation prior to or on Jan. 1, 2019:
- 2019 gross receipts minus 2020 gross receipts minus PPP loan amounts.
Calculation 2: For applicants that began operations partially through 2019:
- Average 2019 monthly gross receipts x 12 minus 2020 gross receipts minus PPP loan amounts.
Calculation 3: For applicants that began operations on or between Jan. 1, 2020, and March 10, 2021, and applicants not yet opened but that have incurred eligible expenses:
- Amount spent on eligible expenses between Feb. 15, 2020, and March 11, 2021, minus 2020 gross receipts minus PPP loan amounts.
For those entities that began operations partially through 2019, you may elect (at your own discretion) to use either calculation 2 or calculation 3.
SBA Administrator Isabella Casillas Guzman said her agency is aiming to make the process as simple as possible.
“Thanks to clear directives from Congress, we’re rolling out this program to make sure that these businesses can meet payroll, purchase supplies and get what they need in place to transition to today’s COVID-restricted marketplace,” she said.
“We’re also focused on ensuring that the RRF program’s application process is streamlined and free of burdensome, bureaucratic hurdles — while still maintaining robust oversight.
“Under my leadership, the SBA aims to be as entrepreneurial as the entrepreneurs we serve — and that means meeting every small business where they are, and giving them the support they need to recover, rebuild and thrive.”