MBE CPAs has moved from mbecpa.com to mbe.cpa. Learn why here. If you have concerns or questions please call (608) 356-7733.

Restaurant Revitalization Fund

The American Rescue Plan Act establishes a $28.6 billion Restaurant Revitalization Fund (RRF) available for the SBA to award eligible businesses within the food and beverage industry, as a tax-free federal grant. The application to apply is not yet available but will be opening up in the coming weeks. Here’s what you need to know in the meantime.

Eligible Businesses

You may be eligible for this grant if you own or operate 20 or fewer establishments, are not a publicly-traded company, and can demonstrate a loss in revenue. The following are entities that are eligible to apply for this grant:

  • Restaurants
  • Food stands, food trucks, or food carts
  • Caterers
  • Saloons, inns, taverns, bars, or lounges
  • Brewpubs, tasting rooms, taprooms, or other licensed facilities of a beverage alcohol producer where the public may sample or purchase products.
  • Or a place of business in which the public or patrons assemble for the primary purpose of being served food or drink.
Funding Eligibility Calculation

An eligible business may receive an RRF grant equal to the amount of its pandemic-related revenue loss. For businesses that opened in 2018 or earlier, your grant funding is calculated by subtracting your 2020 gross receipts from your 2019 gross receipts.

If your business was not operating for the entirety of 2019, then your loss of revenue will be calculated based on the difference between 12 times the average monthly gross receipts for 2019 and the average monthly gross receipts for 2020.

Alternatively, if your business was not operating until 2020, you may receive a grant equal to the amount of “eligible expenses” subtracted by your business’s gross receipts received.

Lastly, if your business is currently not in operation as of the date you apply for the grant, but you have “eligible expenses”, then the grant offered may be equal to those expenses.

It’s important to note, that for all applicants, regardless of when your business began operating, you must also subtract any funds received from your first and second draw PPP loans from your total revenue loss.

For assistance with calculating your revenue loss and grant eligibility, please contact your local MBE CPAs accountant or [email protected].

Applying

Applications are not yet available, but the SBA will be launching the application and review process in the coming weeks. For the first 21-days of the grant program, priority will be given to small businesses owned and operated by women, veterans, or socially and economically disadvantaged groups.

Applicants must also submit a good faith certification that:

  1. Uncertainty of current economic conditions makes necessary the grant request to support the ongoing operations.
  2. You have not applied for nor received a “Shuttered Venue Operators” grant (funding for performing arts, live venues, theaters, etc.).

Lastly, you may apply using your existing business identifiers, as the SBA will avoid imposing any additional burdens on applicants.

Funding Use and Timeframe

Grant funds received must be spent on the following

  • Payroll
  • Principal or interest on mortgage obligations
  • Rent
  • Utilities
  • Maintenance including construction to accommodate outdoor seating
  • Personal protective equipment (PPE) and cleaning supplies
  • Normal food and beverage inventory
  • Certain covered supplier costs
  • Operational expenses
  • Paid sick leave
  • Any other expenses that the SBA deems essential to maintaining your operations.

Funding received from the RRF must be applied to the above eligible expenses incurred between the covered period of February 15, 2020 and December 31, 2021. If you do not spend all the grant funds awarded to you and your business, or your business permanently closes before the end of the covered period, you must return any and all unused funds to the Treasury.

Contact Us

If you have any questions or would like to discuss your eligibility with one of our accountants, please contact us at [email protected] or (608) 356-7733 and we would be happy to be of assistance.

Follow us on social media

MBE CPAs PPP2 Qualification resource sheet can be downloaded here.