On Tuesday, April 27, SBA Administrator Isabella Casillas Guzman announced that the U.S. Small Business Administration will begin registrations on Friday, April 30, 2021, at 9 a.m. EDT and will open to application submissions on Monday, May 3, 2021, at noon EDT for the Restaurant Revitalization Fund (RRF). This program is being administered directly by the U.S. SBA and not Cathay Bank.
To prepare, applicants should do the following:
Register their account in advance at restaurants.sba.gov beginning Friday, April 30, 2021, at 9 a.m. EDT.
Start preparing the required documentation: for guidelines on the required documentation as well as award calculations please refer to the program guide available at the link above.
Please note for the first 21 days that the program is open, the SBA will prioritize funding applications from businesses owned by women, veterans and social and economically disadvantaged individuals. However, all eligible applicants are still encouraged to submit their applications as soon as the portal opens. Following the 21 days, all eligible applications will be funded on a first-come, first-served basis.
Established under the American Rescue Plan, the Restaurant Revitalization Fund provides a total $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 funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location.
Below are some key components of the new program:
Eligible entities are businesses that are not permanently closed and include businesses where the public or patrons assemble for the primary purpose of being served food and drink.
Examples would be restaurants, food trucks, caterers, bars, saloons, etc.
To fall under this category, at least 33% of gross receipts must be from onsite food and beverage sales in 2019.
Non-eligible businesses including those that:
Own or operate (together with all affiliate businesses) more than 20 locations, regardless of whether those locations do business under the same or different names or are in different industries.
Is a publicly traded company, state or local government operated business, a non-profit organization or a permanently closed business.
SBA may provide funding up to $5 million per location not to exceed $10 million total for the applicant and any affiliated businesses. Minimum reward is $1,000.
Franchise business are eligible as long as the franchise is listed on the SBA Franchise Directory.
Paycheck Protection Program (PPP):
Any funds already received through the Paycheck Protection Program will be subtracted from the Applicant’s final funding amount.
If the applicant received a PPP loan, the applicant must use the same EIN number for its RRF application as it was issued in its PPP application.
Upon applying for RRF, applicant must withdraw any outstanding PPP application.
Eligible use of funds includes the following:
Business Expenses such as payroll, utilities, supplies, supplier costs, other operating expenses.
Construction Expenses including construction of outdoor seating. Note, other expansion costs are not eligible.
Payments (covering both principal and interest) on any business mortgage or other business debt obligations.
Funds must be spent on eligible uses no later than March 11, 2023.
Please access the link below to learn the basics of the Restaurant Revitalization Fund and how to apply.
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