The Baton Rouge Area Chamber recently hosted Michael Ricks, district director for the U.S. Small Business Administration, to prepare restaurant owners to apply to the Restaurant Revitalization Fund (RRF). The RRF, which started taking applications Monday, May 3rd, provides emergency assistance for eligible restaurants, bars, and other qualifying businesses impacted by COVID-19. Established by the American Rescue Plan Act, the RRF 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. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.
View the recording from BRAC’s webinar on the RRF here.
Download a copy of the SBA’s presentation here.
Who’s eligible?
- Restaurants
- Food stands, food trucks, food carts
- Caterers
- Bars, saloons, lounges, taverns
- Snack and nonalcoholic beverage bars
- Bakeries (onsite sales to the public comprise at least 33% of gross receipts)
- Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts)
- Breweries and/or microbreweries (onsite sales to the public comprise at least 33% of gross receipts)
- Wineries and distilleries (onsite sales to the public comprise at least 33% of gross receipts)
- Inns (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
How do I apply?
Registration for the SBA application portal began on Friday, April 30, 2021, at 8 a.m. CST.
Applications opened on Monday, May 3, 2021, at 11 a.m. CST.
In the first 21 days, the SBA will accept applications from all eligible applicants, but only process and fund priority group applications. “Priority” is defined as a small business concern that is at least 51 percent owned by one or more individuals who are women, veterans, or socially and economically disadvantaged. From day 22 onward, the SBA will accept applications from all eligible applicants and process them in the order in which they are approved.
You can apply through SBA-recognized Point of Sale (POS) vendors or directly via SBA in a forthcoming online application portal. Participating POS providers include Square, Toast, Clover, NCR Corporation (Aloha). If you are working with Square or Toast, you do not need to register beforehand on the SBA application portal.
Note that if you have received or applied for the PPP, the SBA will deduct that amount from applicants’ final RRF funding, as the SBA has a general rule against “double dipping.”
How to calculate potential funding amount depends on how long the business has been operating.
Calculation 1: for applicants in operation prior to or on January 1, 2019:
2019 gross receipts minus 2020 gross receipts minus PPP loan amounts
Calculation 2: for applicants that began operations partially through 2019:
(Average 2019 monthly gross receipts x 12) minus 2020 gross receipts minus PPP loan amounts
Calculation 3: for applicants that began operations on or between January 1, 2020 and March 10, 2021 and applicants not yet opened but have incurred eligible expenses:
Amount spent on eligible expenses between February 15, 2020 and March 11, 2021 minus 2020 gross receipts minus 2021 gross receipts (through March 11, 2021) minus PPP loan amounts
For those entities who began operations partially through 2019, you may elect (at your own discretion) to use either calculation 2 or calculation 3.
How can I use the funds?
As with the Paycheck Protection Program, the RRF awards do not have to be repaid, as long as the money is used on qualified expenses. More details on this process are pending, but Ricks notes that owners should maintain detailed expenditure reports.
- Business payroll costs (including sick leave)
- Payments on any business mortgage obligation
- Business rent payments (note: this does not include prepayment of rent)
- Business debt service (both principal and interest; note: this does not include any prepayment of principal or interest)
- Business utility payments
- Business maintenance expenses
- Construction of outdoor seating
- Business supplies (including protective equipment and cleaning materials)
- Business food and beverage expenses (including raw materials)
- Covered supplier costs
- Business operating expenses
For more COVID recovery resources, visit brac.org/recovery or reach out to us at info@brac.org.
Elizabeth Walker
As the Policy and Research Project Manager, Elizabeth Walker provides leadership on initiatives and policies, project management, research analysis and administration for initiatives that advance BRAC’s annual policy agenda.