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The original item was published from 4/29/2021 5:11:30 PM to 8/1/2021 12:00:03 AM.

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Posted on: April 29, 2021

[ARCHIVED] Restaurant Revitalization Fund Registration Opens Tomorrow, April 30

The SBA announced it will allow potential applicants to register and open up accounts to apply for Restaurant Revitalization Fund (RRF) grants starting April 30, 2021, at 9:00 a.m. EDT. Actual applications may be submitted starting Monday May 3, 2021, at noon EDT. The online application will remain open to any eligible establishment until all of the $25 billion of available funds is exhausted.

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 should submit applications as soon as the online application portal opens. Following the 21 days, all eligible applications will be funded on a first-come, first-served basis.

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 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 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.) 
  • Attending a live recorded virtual training webinar available here. 

Funding details and calculations

The program includes $5 billion set aside for applicants with 2019 gross receipts of $500,000 or less; an additional $4 billion set aside for applicants with 2019 gross receipts from $500,000 to $1.5 million; and an additional $500 million set aside for applicants with 2019 gross receipts of $50,000 or less.

The SBA may provide funding of up to $5 million per location, not to exceed $10 million for the applicant and any affiliated businesses. The minimum award is $1,000. Calculations for payment are:

  • Calculation 1. For applicants in operation before or on Jan. 1, 2019: 2019 gross receipts minus 2020 gross receipts minus Paycheck Protection Program (PPP) loan amounts. 
  • Calculation 2. For applicants that began operations partially through 2019: (Average 2019 monthly gross receipts times 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, that have not yet opened but 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. 

Entities that began operations partially through 2019 may elect to use either Calculation 2 or Calculation 3.

Funds may be used for specific expenses, including:

  • Business payroll costs, including sick leave; 
  • Payments on any business mortgage obligation; 
  • Business rent payments, not including prepayment of rent; 
  • Business debt service, both principal and interest, not including any prepayment of principal or interest; 
  • Business utility payments; 
  • Business maintenance expenses; 
  • Construction of outdoor seating; 
  • Business supplies, including protective equipment and cleaning materials; 
  • Business food and beverage expenses, including raw materials; 
  • Covered supplier costs; and 
  • Business operating expenses. 

For purposes of this program, gross receipts do not include:

  • Amounts received from first- or second-draw PPP loans; 
  • Amounts received from Economic Injury Disaster Loans (EIDL); 
  • Advances on EIDL (EIDL Advance and Targeted EIDL Advance); 
  • State and local grants; or 
  • SBA Section 1112 payments. 

If you have any questions about this please contact your ALL advisor or call us at 617-738-5200.

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