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May 10, 2021 ConnectPay

What to Know About the Restaurant Revitalization Fund

According to the Small Business Administration, the Restaurant Revitalization Fund 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. The minimum funding provided is $1,000. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.

Eligible entities are businesses where serving food or drinks is their primary function. This includes:

  • Restaurants.
  • Food stands, food trucks, food carts.
  • Caterers.
  • Bars, saloons, lounges, taverns.
  • Snack and nonalcoholic beverage bars.
  • Bakeries (if onsite sales to the public comprise at least 33% of gross receipts).
  • Brewpubs, tasting rooms, taprooms (if onsite sales to the public comprise at least 33% of gross receipts).
  • Breweries and/or microbreweries (if onsite sales to the public comprise at least 33% of gross receipts).
  • Wineries and distilleries (if onsite sales to the public comprise at least 33% of gross receipts).
  • Inns (if onsite sales of food and beverage to the public comprise at least 33% of gross receipts).
  • Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products.

However, some businesses are automatically ineligible for the Restaurant Revitalization Fund (RRF). These include:

  • State or government-owned businesses.
  • Entities that own or operate more than 20 locations as of March 13, 2020 - even if they operate under a different name or industry.
  • Permanently closed establishments.
  • Nonprofit organizations.
  • Has applied for a pending grant or received the Shuttered Venue Operators Grant.

You will need the following documentation to prove your eligibility:

  • 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.

Relevant entities will also have to prove they meet the 33% thresholds.

For a comprehensive look at the Restaurant Revitalization Fund, please go to the SBA website.

 

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Published by ConnectPay May 10, 2021
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