Everything You Need to Know About the Restaurant Revitalization Fund

 
By Saul Newton, WVCC Executive Director
 
Restaurants and businesses in the hospitality industry have been disproportionately impacted by the economic downturn because of the pandemic. Thankfully, help is on the way. The American Rescue Plan Act established the Restaurant Revitalization Fund (RRF) to provide funding to help restaurants and other eligible businesses keep their doors open. 
 

Businesses eligible to apply for funds through the Restaurant Revitalization Fund are businesses where the public or patrons assemble for the primary purpose of being served food or drink. To satisfy the requirement for “place of business in which the public or patrons assemble for the primary purpose of being served food or drink,” an eligible entity must have at least 33% in 2019 on-site sales to the public. The Applicant must make a good faith certification on SBA Form 3172 that current economic uncertainty makes this funding request necessary, and the applicant does not have a pending application for and has not received a Shuttered Venue Operator grant from SBA.

 
 

The SBA may provide funding of up to $5,000,000 per location (not to exceed $10,000,000 total for the Applicant and any affiliated businesses) for Applicants who meet eligibility requirements. Any funds already received through the Paycheck Protection Program will be subtracted from the Applicant’s final funding amount. $5 billion is set aside for applicants with 2019 gross receipts of not more than $500,000. An additional $4 billion is set-aside for applicants with 2019 gross receipts from $500,001 to $1,500,000. An additional $500 million is set-aside for applicants with 2019 gross receipts of not more than $50,000.

 

Businesses can use funds awarded through the RFF for a variety of business expenses, construction expenses, and business debt. Funds can be used for things like payroll, utility and maintenance expenses, supplies and materials, outdoor seating, and payments for mortgages and debt service.

 

The application period has not yet been announced. However, there will be a "pilot period" with participants randomly selected from existing PPP borrowers who self identified as members of RRF priority groups. Pilot participants will not receive funds until RRF is open to the public at application launch. Following the pilot period, there will be a 21-day "priority period" during which the SBA will accept applications from small businesses owned by women, veterans, and socially and economically disadvantaged Applicants. After the priority period has passed, all eligible applications will be processed and funded until program funds are exhausted.

 

 

There are a number of ways eligible businesses can apply for funding through the RRF. The SBA recommends working with a designated SBA Restaurant Partner to complete an application. Alternatively, eligible businesses can apply with the SBA directly online or over the phone.

 

Any businesses with questions or needing assistance with the RRF are encouraged to contact the WI Veterans Chamber of Commerce, or partners within the SBA resource network including local SBDCs, SCORE chapters, Womens Business Development Centers, and the Veterans Business Outreach Center.

For more information via the SBA, click here.