Give your business a boost with the SBA’s Restaurant Revitalization Fund grant
If you run a restaurant, cafe, bar, or any other type of business in the food and beverage industry, it’s probably been a difficult year for you.
Hopefully you’ve been able to access funding through the PPP loans program, or other opportunities through the SBA. There’s a new fund that is live that you need to know about. The Restaurant Revitalization Fund (RRF) grant is a new federal initiative run by the SBA and designed to help your business stay afloat in this critical moment.
What is an RRF grant?
RRF grants are just that, grants. If you use them inappropriately, they can convert to loans, so you need to be careful. However, the anticipation is that in most circumstances, this is basically free, non-taxable funding to help you get back on your feet after this troubling era. Whereas the PPP loans need to primarily support your payroll, an RRF can also cover mortgage/rent payments, utilities, outdoor seating expenses, maintenance, supplies, and more. Eligible expenses should be incurred between February 15th, 2020 and December 31, 2021, although that end date might be extended.
Am I eligible for an RRF grant?
If you sell food or drink as a primary part of your business, you likely qualify for an RRF grant. In addition to traditional restaurants and eateries, this extends to food stands, food trucks, and caterers. Also included are bars, brewpubs, tasting rooms, taprooms, and licensed facilities where people can sample, taste, or purchase products.
How much can I receive through an RRF grant?
Grants are calculated with the following formula. 2019 gross receipts – 2020 gross receipts – value of PPP loans received = estimated RRF grant. For example: $750K in 2019, $400K in 2020, and got $125K in PPP loans, you would be able to get $225K from the RRF. $750,000 – $400,000 – $125,000 = $225,000
If you were not open for the entirety of 2019, your starting figure is your average monthly gross receipts x 12. If you opened in 2020 or beyond, fear not! There are other calculations you can use to find your grant amount as you fill out paperwork.
What are my next steps?
Set up a meeting with our team – it’s free and we can help you with everything. Be prepared with your sales reports and tax documents to facilitate a smooth application process. Call Andy today @ 262.370.8560 to get started.