April 29, 2021
SBA announced that it will allow potential applicants to register and open accounts to apply for a grant from the Restaurant Revitalization Fund (FRR) as of April 30, 2021 at 9:00 a.m. EDT. Real applications can be submitted as of Monday, May 3, 2021, noon EDT. The online application will remain open to any qualifying institution until all of the $ 25 billion available funds are used up.
During the first 21 days of the program’s opening, the SBA will prioritize funding applications from businesses owned and controlled by women, veterans, and the socially and economically disadvantaged. However, all eligible applicants must submit their application as soon as the online application portal opens. After the 21 days, all eligible requests will be funded on a first come, first served basis.
In preparation, the ASB recommends that eligible applicants familiarize themselves with the application process in advance to ensure a smooth and efficient application experience, in particular by:
- Opening an account in advance at restaurants.sba.gov starting Friday, April 30, 2021 at 9 a.m. EDT.
- Review official guidelines, including the program guide, frequently asked questions, and a sample application.
- Prepare the required documentation.
- Work with a point of sale provider or visit restaurants.sba.gov to submit a request when the app portal opens. (Note: If an applicant works with a point-of-sale salesperson, they do not need to pre-register with the site.)
- Participate in a live recorded virtual training webinar available here.
Funding details and calculations
The program includes $ 5 billion earmarked for applicants with 2019 gross receipts of $ 500,000 or less; an additional $ 4 billion earmarked for applicants with 2019 gross receipts between $ 500,000 and $ 1.5 million; and an additional $ 500 million set aside for applicants with 2019 gross receipts of $ 50,000 or less.
The SBA can provide funding of up to $ 5 million per location, without exceeding $ 10 million for the applicant and affiliated companies. The minimum reward is $ 1,000. The payment calculations are:
- Calculation 1. For applicants active before or on January 1, 2019: 2019 gross revenue minus 2020 gross revenue minus Paycheck Protection Program (PPP) loan amounts.
- Calculation 2. For applicants who started their activities partially until 2019: (Average monthly gross receipts of 2019 multiplied by 12) minus the gross receipts of 2020 minus the PPP loan amounts.
- Calculation 3. For applicants who started their activities on or between January 1, 2020 and March 10, 2021, who have not yet opened but have incurred eligible expenses: Amount spent on eligible expenses between February 15, 2020 and March 11 2021, minus 2020 gross revenue minus PPP loan amounts.
Entities that started their activities partially until 2019 can choose to use Calculation 2 or Calculation 3.
The funds can be used for specific expenses, including:
- Company wage costs, including sick leave;
- Payments on any commercial mortgage bond;
- Company rent payments, not including prepayment of rent;
- Corporate debt service, both principal and interest, excluding any early repayment of principal or interest;
- Commercial utility payments;
- Business maintenance expenses;
- Construction of outdoor seating;
- Business supplies, including protective equipment and cleaning materials;
- Company food and beverage costs, including raw materials;
- Supplier costs covered; and
- Business operating expenses.
For the purposes of this program, gross receipts do not include:
- Amounts received from first or second draw PPP loans;
- Amounts received from economic disaster loans (EIDL);
- Advances on EIDL (EIDL advance and targeted EIDL advance);
- State and local grants; or
- SBA Section 1112 Payments.
If you have any questions about this, please contact your ALL advisor or call us at 617-738-5200.
This press release was produced by the City of Brookline. The opinions expressed here are those of the author.