The Small Business Administration (SBA) is preparing to launch the Restaurant Revitalization Funding Program (RRF). In order to help you apply, we have outlined some general information about the program below.
Basic information about the RRF:
- What is the RRF? It’s a new federal program established under the American Rescue Plan Act (ARPA) that was passed on March 11. The purpose of the RRF is to provide financial support to eligible businesses that suffered revenue losses related to the COVID-19 pandemic.
- Funding amounts: In general, restaurants may request an amount equal to the reduction in gross receipts they experienced in 2020 as compared to 2019. Note that the RRF rules require that PPP funds received must be counted as gross receipts for 2020 in determining the maximum eligible funding amount.
- Not a loan: Unlike the Paycheck Protection Program, the RRF is not a loan and does not require a bank to process the application. The SBA will accept applications directly.
- Allowable uses of funds: Funds must be used for specific expenditures stated in the application.
- How long will the funds be available? The RRF program has been funded with nearly $29 billion. However, it is unclear how long the funds will be available.
If you wish to apply to the RRF program, the SBA recommends qualifying applicants familiarize themselves with the application process in advance to ensure a smooth and efficient application experience, specifically by:
- Visiting the SBA RRF Program Guide and FAQs Website.
- Starting Friday, April 30, 2021, at 9 a.m. EDT, you can register for an account by going to the SBA’s RRF Application Website.
- Reviewing the official guidance, including program guide, frequently asked questions, and application sample. Here is a Sample RRF Application Form.
- Preparing the required documentation.
- 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 applicants.
We Can Help
Much of the information for the application will come directly from you. If you qualify, we can assist with calculating the amount of funding for your operation. As always, please contact your accountant with any questions. We ask for your patience as we are still busy with the 2021 tax filing season. Contact us!