Restaurant Revitalization Fund SBA

The Restaurant Revitalization Fund (RRF) is to provide restaurants with financial aid for their revenue loss related to the pandemic. The Restaurant Revitalization Fund was brought with the American Rescue Plan which covers multiple types of aids for businesses and individuals. The main purpose of the fund is to help restaurants keep their doors open. The RRF isn’t a fund that’s given out in cash though. The restaurant owners can spend the funds on eligible expenses through March 11, 2023. This gives restaurant owners about two years to keep up with the expenses much easier. 

Note that the Restaurant Revitalization Fund only covers eligible uses and the amount is determined by the restaurant’s pandemic-related loss. If a restaurant didn’t have any pandemic-related loss, the business isn’t eligible for the RRF. Having said that, there needs to be an assessment of the financial damages caused by the pandemic and the amount cannot exceed $10 million per restaurant. However, the maximum grant per physical location is $5 million. A restaurant won’t be eligible for $5 million or above per single location and $10 million up to per applicant. 

Calculating the Restaurant Revitalization Fund

The method for calculating the RRF is simple. The grant amount is calculated by taking the eligible expenses and subtracting the total gross receipts. What this points out is that the business must have had a loss during the year. 

For new businesses that opened right before the pandemic (2019 officially), the restaurant must’ve had a negative net profit. If a business doesn’t have a negative net profit, there aren’t any eligible funds for the restaurant. The bottom line is that the restaurants that operated at a loss are eligible for the RRF.

What are the eligible expenses for the Restaurant Revitalization Fund?

The eligible expenses for the RRF are as follows. 

  • Business debt service
  • Cleaning products and supplies
  • Construction of outdoor seating
  • Food and beverage expenses
  • Maintenance expenses 
  • Mortgage payments
  • Rents
  • Utilities

Applying for the Restaurant Revitalization Fund

Applying for the RRF can get quite tricky and overwhelming. There are multiple steps to the application, but the Small Business Administration makes it easy for every applicant. The Small Business Administration has put together a video for restaurant owners to complete their application that you can watch below.

You can also call the SBA about your application when you need help by dialing 1-844-279-8898.

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