April 28, 2021
C-Suite Wednesday — Restaurant Revitalization Fund Opens May 3, 2021
The SBA has announced that it will begin accepting online portal registrations for the Restaurant Revitalization Fund (RRF) grant program on Friday, April 30, 2021, at 9 a.m. EDT. The portal will then officially begin accepting applications on Monday, May 3, 2021, at 12:00 p.m. EDT.
“Recognizing the great urgency to help restaurants keep their doors open – and with a clear mandate from Congress – the SBA worked at a breakneck speed and is excited to launch this program,” says Patrick Kelley, SBA Associate Administrator, Office of Capital Access. “From day one, we engaged with diverse stakeholders in the food industry community to make sure we built and delivered the program equitably, quickly, and efficiently.”
Although SBA’s lending partners will not participate directly in the RRF, it is important that they have a general idea of how the program works so they can answer customer questions and appropriately address the impact of these grants when underwriting 7(a) and 504 loans. Here are the key things SBA lending partners need to know about the RRF:
- This program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location.
- RRF recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.
- Funds may be used for payroll costs, mortgage obligations, rent payments, debt service, utility payments, maintenance expenses, construction of outdoor seating, business supplies, food and beverage expenses, supplier costs, and operating expenses.
- 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 (as defined in 13 CFR § 124.103).
- Applicants may apply through an SBA-recognized Point of Sale (POS) vendor or directly via SBA in a forthcoming online application portal. Participating POS providers include Square, Toast, Clover, and NCR Corporation (Aloha).
- Applicants will need to submit SBA Form 3172, IRS Form 4506-T, and Gross Receipts Documentation.
Additional information about the RRF is available on the SBA website.