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