The American Rescue Plan Act, signed into law in March, established the Restaurant Revitalization Fund (RRF) to help restaurants and other eligible businesses impacted by the COVID pandemic. The RRF will award grants of up to $5 million per physical location, capped at $10 million per entity and affiliates. Total funding available under the RRF is $28.6 billion. The Small Business Administration (SBA) is now accepting applications.
Eligible entities include:
- Food stands, food trucks, and food carts
- Bars, saloons, lounges, and taverns
- Snack and nonalcoholic beverage bars
- Bakeries, brewpubs, tasting rooms, taprooms, microbreweries, wineries, distilleries at which on-site sales to the public comprise at least 33 percent of the gross receipts
- Inns at which on-site sales of food and beverages to the public comprise at least 33 percent of gross receipts
- Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products
May 3 was the first day applications could be submitted, but for the first 21 days the SBA will prioritize reviewing applications from small businesses owned by women, veterans, and socially and economically disadvantaged individuals. Recipients are not required to repay the funding provided funds are used for eligible uses no later than March 11, 2023.
Program details are available from the SBA, including a sample application form and information about required documents. We expect the program to have significant interest and recommend that those who expect to be eligible begin the application process immediately. Businesses that have received funding under the Paycheck Protection Program (PPP) are eligible to receive RRF funding, however, amounts received under the PPP do reduce the funding available under the RRF.
R&A can assist you in determining if your business qualifies for RRF funding and calculate how much funding might be expected. Please contact your trusted R&A advisor if you have any questions or would like support through the application process.