Overview of the Restaurant Revitalization Fund

May 11, 2021
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By: Allen Abraham, Esq.

When Congress passed the American Rescue Plan last month, they created The Restaurant Revitalization Fund (“RRF”), which provides funds to help restaurants and other eligible businesses impacted by COVID-19. The Small Business Administration (“SBA”) will oversee the program and administer the funds. Restaurant owners who have one location can apply for up to $5 million, and those with multiple locations can apply for up to $10 million. Recipients are not required to repay the funding so long as the funds are deployed for eligible uses no later than March 11, 2023. The SBA opened the application portal on April 30, 2021 and began accepting applications on May 3, 2021.

For the first twenty-one days, to ensure that minority business owners can access the funds, only those in a Priority Group can to apply for the RRF. The SBA has defined Priority Groups as: women, veterans, and individuals who are both socially and economically disadvantaged. The SBA has stated that the economically disadvantaged group includes those who meet certain income and asset limits and are Black, Hispanic, Native American, Asian-Pacific American or South Asian American. A member of the Priority Group must own 51% or more of the business to apply for the RRF during the first twenty-one days.

To apply for the RRF, Restaurant owners must submit SBA Form 3172, IRS Form 4506-T, and any of the following documentation to prove gross receipts:

  • Business tax returns (IRS Form 1120 or IRS 1120-S).
  • IRS Forms 1040 Schedule C; IRS Forms 1040 Schedule F.
  • For a partnership: partnership’s IRS Form 1065 (including K-1s).
  • Bank statements.
  • Externally or internally prepared financial statements such as income statements or profit and loss statements.
  • Point-of-sale report(s), including IRS Form 1099-K.

The RRF can be used until March 11, 2023. Funds can be used for the following purposes:

  • Business payroll costs;
  • Payments on any business mortgage obligation;
  • Business rent payments;
  • Business debt service;
  • Business utility payments;
  • Business maintenance expenses;
  • Construction of outdoor seating;
  • Business supplies, including protective equipment and cleaning materials;
  • Business food and beverage expenses;
  • Covered supplier costs; and
  • Business operating expenses.

While there are more specific requirements for various groups, the above are some of the baseline requirements to apply for the RRF.

Like the Payroll Protection Program, Falcon Rappaport & Berkman LLP and its COVID-19 Task Force is ready and able to assist you in applying for the RRF. If you would like to discuss the application with our team, please feel free to contact our office at (516) 599-0888.

DISCLAIMER: This summary is not legal advice and does not create any attorney-client relationship. This summary does not provide a definitive legal opinion for any factual situation. Before the firm can provide legal advice or opinion to any person or entity, the specific facts at issue must be reviewed by the firm. Before an attorney-client relationship is formed, the firm must have a signed engagement letter with a client setting forth the Firm’s scope and terms of representation. The information contained herein is based upon the law at the time of publication.

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