Restaurant Revitalization Fund Rules Emerge

The U.S. Small Business Administration has released more information about the rules that will govern the $28.6 billion Restaurant Revitalization Fund (RRF) grant program that will open on May 3. The RRF will provide grants of $1,000 to $5 million per location to restaurants, bars, pubs, food carts, caterers, and other restaurant-related businesses that have lost revenue due to the pandemic.

Businesses that were open prior to January 2019 will calculate their grant eligibility amount by subtracting 2020 revenue from 2019 revenue and then subtracting from the subtotal any PPP loan amounts that were received. Other COVID-19 relief, such as EIDL funds and state and local grants, must be excluded from revenue before doing the calculation. A separate set of calculations are used by businesses that opened between January 2019 and March 11, 2021. Organizations that apply for the Shuttered Venue Operators Grant (SVOG) are not eligible for a RRF grant.

A guide and sample application are available to help business owners prepare to apply. Several local nonprofit business assistance organizations are available to assist with filling out the application. They include WESST, SCORE Albuquerque and Santa Fe, SBDC, VBOC and others.

For the first 21 days that the program is open, the SBA will prioritize reviewing applications from small businesses owned by women, veterans, and socially and economically disadvantaged individuals. Following the 21-day period, all eligible applicants are encouraged to submit applications.

New rules are added here as they are released. The National Restaurant Association offers a 10-page fact sheet to help businesses navigate the rules. Register and apply here on May 3.

CRITICAL UPDATE: On May 18, the SBA announced that eligible eating establishments have until Monday, May 24, 8 p.m. ET, to submit applications to the Restaurant Revitalization Fund.

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