Breaking Down the American Rescue Plan Act, Part 2: Restaurant Revitalization Fund

Last week, the SBA announced the timeline for the Restaurant Revitalization Fund (RRF). The portal opened on Monday, May 3 at noon EDT, and the SBA is now accepting applications. Keep reading to learn more about this grant program and how you can apply.

The RRF was created under the ARPA to provide restaurants grants equal to their pandemic-related revenue loss. Restaurants can receive up to $10 million per entity or $5 million per physical location. Businesses that opened in 2020 are still eligible to apply along with those in operation prior to 2020.

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. Following the 21 days, all eligible applications will be funded on a first-come, first-served basis. The SBA has also set aside $5 billion of the total $28.6 billion for businesses with gross receipts of $500,000 or less during 2019.

The SBA is encouraging all eligible applicants to submit applications as soon as the portal opens. Get those applications in right away, and the SBA will begin their funding process by priority. They say the program will remain open until funding is exhausted, but they offer no estimates of how many applications will be funded or how long the program will run.

In preparation, the SBA recommends qualifying applicants familiarize themselves with the application process in advance to ensure a smooth and efficient application experience, specifically by:

• Registering for an account at sba.gov;
• Reviewing the official guidance, including program guide, frequently asked questions, and application sample;
• Preparing the required documentation.

The SBA has also announced partnerships with a group of point-of-sale (POS) service providers, such as Clover and NCR, to help expedite applications. We suggest contacting your POS provider to determine if and how they are participating and how their approach can help you expedite your application.

Have questions? Give us a call today, and we’ll walk you through it.

-Stanley & Kelly