On May 3, 2021, American restaurants’ long wait ended. The U.S government’s Restaurant Revitalization Fund (RRF) began accepting applications for relief related to pandemic losses.
A lot of money is at stake: $26.8 billion, in total. And restaurants are eager to get their share. In the first two days that applications were open, more than 186,000 applications poured in.
If you’re wondering about eligibility guidelines, relief amounts and how to apply, here’s what you need to know.
Is it too late to apply for relief from the Restaurant Revitalization Fund?
No! But you should apply as soon as possible. In the program’s first 21 days, the Small Business Administration is prioritizing applications from businesses majority-owned by women, veterans, or socially and economically disadvantaged individuals. After that, the SBA will process applications and award funds on a first come, first served basis.
How much money can my business get from the RRF?
The program is intended to provide restaurants with COVID-19 relief equal to their pandemic-related revenue loss. The simplest way to calculate your loss, for businesses that were open on or before January 1, 2019, is: 2019 gross receipts minus 2020 gross receipts minus PPP loan amounts.
Businesses that opened later will have a slightly different calculation. Read the full program guide for details. The limits are up to $10 million per business, and no more than $5 million per physical location. The minimum amount of restaurant relief a business can apply for is $1,000.
Which restaurants are eligible to apply for the RRF?
The RRF is open to a wide variety of food- and beverage-based businesses — not just traditional restaurants. To apply, your business must have experienced revenue losses related to the COVID-19 pandemic. Only businesses with 20 or fewer locations (as of March 13, 2020) are eligible.
- Restaurants
- Food stands, food trucks, food carts
- Caterers
- Bars, saloons, lounges, taverns
- Snack and nonalcoholic beverage bars
- Licensed facilities or premises of an alcoholic beverage producer where the public may taste, sample, or purchase products
In addition, the following businesses are eligible as long as their onsite sales to the public comprise at least 33% of gross receipts for 2019. If your business opened in 2020, your original business model should have planned at least 33% of gross receipts in onsite sales to the public.
- Bakeries
- Brewpubs, tasting rooms, taprooms
- Breweries and microbreweries
- Wineries and distilleries
- Inns
Can I apply for relief funding if my restaurant has closed?
Unfortunately, no. The SBA’s program guide says that businesses that have permanently closed, or have filed a Chapter 7 bankruptcy, are not eligible. Businesses that have filed a Chapter 11, 12 or 13 bankruptcy may be eligible if operating under an approved plan of reorganization.
Can I apply for relief funding if I also applied for Paycheck Protection Program (PPP) or Economic Injury Disaster Loan (EIDL) funding?
Yes! Your business is still eligible. However, if you have a pending application for a PPP loan, you should withdraw it upon applying for RRF money. Also, your PPP, EIDL or other special grants/loans should be deducted when calculating your losses.
Do restaurants have to repay the RRF money?
No. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023. The SBA will require recipients to report by December 31, 2021 how much of their award has been used in each expense category.
What are eligible uses for the RRF money?
Funds may be used for specific expenses including:
- Business payroll costs (including sick leave)
- Payments on any business mortgage obligation
- Business rent payments (note: this does not include prepayment of rent)
- Business debt service (both principal and interest; note: this does not include 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, including restaurant equipment
- Business operating expenses
How do I apply for Restaurant Revitalization Fund money?
You can apply through an SBA-recognized Point of Sale (POS) vendor or directly via the SBA in this online application portal: https://restaurants.sba.gov. Participating POS providers include Square, Toast, Clover, NCR Corporation (Aloha), and Oracle. If you are working with Square or Toast, you don’t need to register beforehand on the SBA portal.
Can I get help applying for the Restaurant Revitalization Fund?
The SBA is offering a call center hotline to help restaurant, bar and food business owners apply for relief. Call 844-279-8898 for multi-lingual support.
Hamilton Beach Commercial is here to support your business as you resume normal operations. If we can help advise you on investing in commercial foodservice and beverage equipment, let us know!
