Restaurant Revitalization Fund Overview



Learn the basics of the Restaurant Revitalization Fund including eligibility requirements and use of funds.

Learn more about the Restaurant Revitalization Fund and how to apply: https://www.sba.gov/restaurants

*Text transcript:*

PROGRAM OVERVIEW
Restaurant Revitalization Fund (RRF)

What is it?
Restaurant Revitalization Fund (RRF)

The American Rescue Plan Act (ARPA) became public law on March 11, 2021 and established the RRF.

ARPA appropriated $28.6 billion for RRF, authorizing SBA to award funds.
The appropriations remain available until expended.

Who Is Eligible?

• Restaurants
• Food stands, food
trucks, food carts
• Caterers
• Bars, saloons, lounges, taverns
• Snack and nonalcoholic beverage bars (e.g., coffee shop, ice cream shop)
Sub slide
* For the below, onsite sales to the public comprise of at least 33% of gross receipts.
• Bakeries*
• Brewpubs, tasting rooms, tearooms*
• Breweries and/or microbreweries*
• Wineries and distilleries*
• Inns*
• Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products
• Other similar places of business in which the public or patrons assemble for the primary purpose of being served food or drink

How Much Am I Eligible For?

SBA may provide funding up to $5 million per location, not to exceed $10 million total for the applicant and any affiliated businesses.
Sub slide
The minimum award is $1,000.

How Is This Program Different from Other SBA Programs?

Applicants do not need to be registered in SAM.gov and SBA will not require a DUNS or CAGE identifier.
Valid unexpired ITINs are acceptable. For more information on ITINs visit:

Individual Taxpayer Identification Number | Internal Revenue Service (irs.gov)
and
ITIN expiration FAQs | Internal Revenue Service (irs.gov)

Who Is Ineligible? Entities are ineligible if any of the following apply:

• Is a State or local government-operated business;
• As of March 13, 2020, owns or operates (together with any affiliated business) more than 20 locations, regardless of whether those locations do business under the same or different names or are in different industries;
• Has a pending application for or has received a Shuttered Venue Operators Grant;
• Is a Publicly-Traded Company;
• Is permanently closed;
• Is a Nonprofit organization;
• Is not eligible for funding of at least $1,000.

Who Is Eligible? Form of Organization

Eligible Applicants must be one of the following forms of organization:
• Partnerships
• Limited Liability Companies
• Sole Proprietors
• Independent Contractors
• Tribal Businesses
• LLC taxed as S-Corporations, or Sole Proprietors
Sub slide
• C-Corporations
• S-Corporations
• Self-Employed Individuals
Sub slide
B-Corporations are eligible, but they will select either C-Corp or S-Corp on the application, depending on how they are taxed.
Refer to your tax return to see self-employed vs. sole proprietor distinction.

Who Is Eligible? Franchises

Any business concern operating as a franchise and meeting all other program requirements is eligible. The franchise must be listed on the SBA Franchise Directory.
Sub slide
In the application portal, applicants will be able to look up their entity on the SBA Franchise Directory.

For brands not listed on the Directory
(including brands that have previously been denied listing on the Directory because of affiliation issues), the franchisor must submit the Franchise Disclosure Document (or other agreement) and all other documents a franchisee is required to sign to: franchise@sba.gov for review of SBA’s other eligibility criteria (e.g., 13 CFR § 120.110).

Who Is Eligible? Bankruptcy

Applicants that are operating under an approved plan of reorganization, under either a Chapter 11, Chapter 12 or Chapter 13 bankruptcy and meet all program requirements are eligible for funding.

An Applicant is not eligible if it has:
• Permanently closed;
• Filed a Chapter 7 liquidation bankruptcy;
or
• Filed for either a Chapter 7 or Chapter 11, 12, and 13 bankruptcy but is not under an approved plan of reorganization.

Permanently closed does not include businesses who temporarily closed their doors due to state or local restrictions or other pandemic causes but are still in operation or have reopened.

When Do I Have to Use the Funds?

The funds must be spent on expenses that were/are incurred between February 15, 2020 and March 11, 2023.
If the business permanently closes after receiving funds, the covered period will end when the business permanently closes or on March 11, 2023, whichever occurs sooner.

Any funds not spent on eligible expenses by the time the covered period ends must be returned to the government.

For Additional Information Please Visit: www.SBA.gov/restaurants
For Local Help Please Visit: www.sba.gov/local-assistance

Source