Restaurant Revitalization Fund (RRF)

Geographic Scope: United States

Background: Established through the American Rescue Plan Act (ARPA) in 2021 with $28.6 billion in funding to help restaurants and food service businesses affected by COVID-19 pandemic losses.

Eligible Business Categories:

• Restaurants
• Bars
• Caterers
• Food Trucks
• Brewpubs
• Taverns
• Lounges
• Tasting Rooms
• Taprooms

Award Amount:

• Maximum: $10 million per entity (including affiliates)
• Per Location: No more than $5 million per location
• Allocation: $5 billion set aside for businesses with gross receipts under $500k in 2019

Eligibility Requirements:

• Must be a privately held business in eligible categories
• Businesses that received Paycheck Protection Program (PPP) loans are eligible but must deduct PPP amounts from RRF grant requests
• Cannot have previously received a Shuttered Venue Operators Grant
• Not eligible: government-run entities, publicly traded companies, entities with 20+ locations
• Priority: Women-owned, socially disadvantaged, economically disadvantaged, and veteran-owned businesses receive priority in application processing

Eligible Expenses (Feb 15, 2020 - Dec 31, 2021):

• Payroll
• Rent (minus prepayments)
• Principal and interest payments on mortgages (minus principal prepayments)
• Utilities
• Maintenance of outdoor seating
• Construction costs for maintenance (walls, floods, decks, furniture, fixtures, equipment)
• Supplies and sanitation (cleaning products and personal protective equipment)
• Food and beverage costs (Feb 20, 2021 - Dec 31, 2021)
• Supplier costs as covered under the grant program
• Other operational expenses
• Sick leave
• Additional maintenance fees

What They Don't Fund:

• Cannot be used in conjunction with Employee Retention Credits (ERC)
• Does not cover expenses outside the eligible date ranges
• Not available to government-operated or publicly traded entities

Grant Calculation:

• Grants designed to offset revenue losses between 2019 and 2020, minus any PPP loans received
• For businesses not operating in 2019: difference between 2019 and 2020 gross receipts multiplied by 12
• For businesses opening after March 15, 2020: covered expenses minus gross receipts
• Different formulas may apply as SBA develops the program

Tax Treatment:

• Grant proceeds are not federally taxable
• Expenses funded by grants are tax-deductible if authorized
• Individual state tax treatment varies by local laws

Application Portal: sba.gov/restaurants (portal launched end of April 2021)

How to Apply

1. Prepare Supporting Documentation
- Gather evidence of gross receipts (to calculate revenue reduction between 2019-2020)
- Collect documentation comparing 2019 and 2020 gross receipts
- Prepare list of projected eligible expenses between Feb 15, 2020 and Dec 31, 2021
- Calculate and document any PPP or ERC funding already received
- Prepare tax returns, financial statements, and business records

2. Calculate Grant Amount
- Determine gross revenue reduction between 2019-2020
- Subtract PPP loans received from the calculated amount
- Subtract ERC funding received
- Do not exceed $10 million per entity or $5 million per location

3. Submit Application
- Apply online through sba.gov/restaurants portal
- Timing: Apply as soon as portal is live—funds are distributed on first-come, first-served basis
- Priority processing for women, socially disadvantaged, economically disadvantaged, and veteran-owned businesses

4. Application Tips
- Apply early as funds are limited and may not cover entire industry
- Gather all necessary documentation before portal goes live to expedite approval
- Early applicants more likely to be approved before funds deplete
- Congress may approve additional funding, but this is not assured

Required Materials:

Proof of business entity status

Business tax identification information

2019 and 2020 business tax returns or financial statements

Documentation of PPP loan amounts (if applicable)

Documentation of ERC amounts (if applicable)

List of covered operating expenses

Ownership information