Restaurant Association Wants to Answer Your Questions About Revitalization Fund
The National Restaurant Association has created a Restaurant Revitalization Fund Grant Program FAQ that answers some of the most common questions from foodservice operators.
The FAQ will be updated as details are released by the U.S. Small Business Administration (SBA). A few of the new items to highlight include:
• Details are emerging on the new covered period, which might be extended 14 additional months (as allowed by the legislation) until March 11, 2023.
• “Eligible entity” definition may have new context for bakeries, breweries, brewpubs, distilleries, taprooms and wineries, only if onsite sales to the public comprise at least 33% of gross receipts (presumably in 2019). For inns, onsite sales of food and beverage to the public may need to comprise at least 33% of gross receipts.
• Permanently closed entities might be ineligible.
• Bankrupt entities without approved plans for reorganization might be ineligible.
• The minimum grant award might be set at $1,000.
Some of the items with additional clarification include:
• For gross receipt totals in 2020, applicants might not need to include Paycheck Protection Program (PPP) loans, SBA debt relief, COVID-19-related economic injury disaster loans (EIDL), EIDL advances, targeted EIDL advances, or any other state and local small business grants (via CARES Act or otherwise). This was a recommendation from the National Restaurant Association to SBA.
• PPP first-draw loans, returned before the Safe Harbor deadline, might not be counted against the grant fund amount. This was also a recommendation to SBA from the National Restaurant Association.
• Self-certification for prioritization eligibility is the likely path for targeted groups and differs from SBA certification for traditional loan programs.
The FAQ also provides specific details about the documents that might be required for application, including:
• Application form.
• IRS Form 4506-T.
• Acceptable documentation of gross receipts and, if applicable, eligible expenses, might include: business tax returns (IRS Form 1120 or IRS 1120-S), IRS forms 1040 schedule C; IRS forms 1040 schedule F; for a partnership: partnership’s IRS Form 1065 (including K-1s); bank statements; externally or internally prepared financial statements such as income statements or profit and loss statements; point of sale report(s), including IRS Form 1099-K.
“These updates are essential for the small business restaurants that are trying to prepare their applications while working long hours to keep their doors open. For that reason, the association and our state partners are committed to getting these details to operators as we learn them,” said Sean Kennedy, executive vice president of public affairs for the National Restaurant Association. “We appreciate the speed at which the SBA is working to set up this program, and we are doing everything we can to make sure that it will work well for the restaurants that have been hoping for this relief over the last 12 months.”
Find the full FAQ, and sign up for the latest information here.