She Boss Talk | May 21 | 3 min read COVID-19 hit restaurants especially hard and so it’s clear why restaurant owners will need some monetary relie
She Boss Talk | May 21 | 3 min read
COVID-19 hit restaurants especially hard and so it’s clear why restaurant owners will need some monetary relief. If you have a restaurant or another qualified establishment, there is a grant opportunity available right now. The American Rescue Act established the Restaurant Revitalization Fund (RRF) to provide funding to businesses like yours. The grant is currently taking applications but you’ll need some important information to get started. Here is your quick guide to the Restaurant Revitalization Grant.
How do I Know If I Qualify for the Restaurant Revitalization Fund?
According to the Small Business Association (SBA), the following people qualify if they lost revenue because of COVID-19:
- Food stands, trucks, and carts
- Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products
- Snack bars and bars that don’t sell alcohol
- Brewpubs, tasting rooms, taprooms*
- Wineries and distilleries*
*- These businesses would need to have onsite sales to the public comprise at least 33% of gross receipts to qualify.
How Much Money Can I Get From the Restaurant Revitalization Fund?
According to the SBA, businesses can get funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. The amount each successful applicant will get depends on certain calculations you can access the program guide here to calculate the amount you would be awarded.
Do I Have to Repay the Money?
As long as you use funds for the intended purpose before March 11, 2023, you don’t have to repay the money.
What Can I Use the Restaurant Revitalization Fund For?
You can’t use this grant to do everything in your business but you can do quite a lot with it. According to the SBA, you can use your restaurant revitalization grant for:
- Payroll (includes sick leave)
- Business mortgages
- Supplies for the business including PPE
- Business rent payment but doesn’t include prepayment of rent.
- Utility Bills for the business
- Business debt service
- Operating Expenses
- Food and Drink which includes raw material
- Outdoor seating construction
- Business maintenance expenses
You aren’t allowed to use the grant for prepayment of rent or prepayment of principal or interest for debt.
How Can I Apply For the Restaurant Revitalization Fund?
Even though the application opened this month, the response has been overwhelming so far. According to the SBA, the application will close Monday, May 24, 2021 at 8pm.
You can apply by using this portal from the SBA. In addition to that, you are able to apply via point of sale vendors such as Square, Toast, Clover, NCR Corporation (Aloha), and Oracle.
The SBA says that if you’re working with Square or Toast, there is no need to register beforehand on the SBA’s portal.
What Documents Will I Need?
The SBA has outlined all the documents you’ll need and here they are:
- Verification for Tax Information: IRS Form 4506-T, completed and signed by you the applicant.
- Gross Receipts Documentation which includes: Business tax returns (IRS Form 1120 or IRS 1120-S)
- -IRS Forms 1040 Schedule C; IRS Forms 1040 Schedule F
- -Bank statements
- -Income Statements or Profit and Loss Statements
- Point of sale report(s), including IRS Form 1099-K
If you’re in a partnership you’ll need the partnership’s IRS Form 1065 (including K-1s)
Owners of breweries or inns be sure to check the SBA website for additional documentation.
If you need more information about the grant, you can check out the SBA website and our Youtube video about the Restaurant Revitalization Grant Application Guidelines.
How Do I Get Other Grants?
If need grants to pump money into your business, you’ll need to be equipped. Equipped with the knowledge that is. Applying for grants may seem simple upfront but it requires special tips and tricks to stand out. Grants often get a lot of applications. You have to find a way to make your application and your business stand out. Thankfully, you don’t have to do this on your own. We have many resources you can access to win grants and grow your business. You can try our Masterclass Bundle or our Checklist and Cheatsheet.
We’ve won many grants and helped others, let us help you.
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