Apply for an RRF Grant in 4 Simple Steps
At a Glance:
- The Main Takeaway: The SBA will open the Restaurant Revitalization Fund (RRF) grant application portal on May 3 and is allowing applicants to register as early as April 30.
- Impact on Your Business: The $28.6 billion in RRF funding will go fast, so your business must act now to obtain the grant you need to shore up losses from the COVID-19 pandemic.
- Next Steps: Take the worry off your shoulders and enlist the help of an expert to navigate the application process. Contact Aprio’s RRF team today.
The Full Story:
Are you considering applying for a Restaurant Revitalization Fund (RRF) grant to support your business in 2021?
You’re one of many. The $28.6 billion RRF pales in comparison to the estimated $270 billion of pandemic-related loss the food service industry has experienced — but the funds will lay the foundation businesses need to get back on track.
The U.S. Small Business Administration (SBA) announced that the application portal will open on Monday, May 3, 2021, at 12:00 PM EST, and applicants can register as early as Friday, April 30, at 9:00 AM EST. All applicants can apply on day one, so now is the time to prepare for your chance to obtain funding.
In our last article on this topic, we discussed many of the frequently asked questions surrounding the RRF grant application process. To help you take full advantage of the program and get the funding your business needs and deserves, I’ve broken down the application process into four, basic steps.
1. Determine your eligibility
Eligible businesses include:
- Restaurants; food stands; food trucks; food carts; caterers; saloons; inns; taverns; bars; lounges; brewpubs; tasting rooms; taproom-licensed facilities or the premises of a beverage alcohol producer where the public may taste, sample or purchase products; or a similar place of business in which the public or patrons assemble for the primary purpose of being served food or drink.
- Businesses that fall within the above categories and owned or operated less than 20 locations, together with their affiliates, as of March 13, 2020.
Please note that you are not eligible for an RRF grant if your business identifies as one of the above but has received or has a pending application to receive a Shuttered Venue Operators Grant (SVOG), is in bankruptcy liquidation or has permanently closed.
2. Calculate your maximum grant amount
The SBA has provided three ways to calculate your RRF grant amount, which are based on when your business was in operation. The SBA defines “operation” as being open, temporarily closed or opening soon with expenses incurred as of March 11, 2021.
Calculation 1: For applicants in operation prior to or on January 1, 2019:
- 2019 gross receipts minus 2020 gross receipts minus PPP loan amounts
Calculation 2: For applicants that began operations partially through 2019:
- (Average 2019 monthly gross receipts x 12) minus 2020 gross receipts minus PPP loan amounts
Calculation 3: For applicants that began operations on or between January 1, 2020, and March 10, 2021, and applicants that have not yet opened but have incurred eligible expenses (detailed here):
- Amount spent on eligible expenses between February 15, 2020, and March 11, 2021, minus 2020 gross receipts minus 2021 gross receipts (through March 11, 2021) minus PPP loan amounts
If your business began operations partially through 2019, you may elect (at your own discretion) to use either Calculation 2 or Calculation 3.
3. Gather the appropriate documentation
The required documentation should support the calculation your business uses for determining your grant amount. Applicants will be required to verify their tax information by signing an IRS Form 4506-T, which you can do digitally on the SBA platform.
You can submit any of the following documentation demonstrating gross receipts and, if applicable, eligible expenses:
- Business tax returns (IRS Form 1120 or IRS Form 1120-S)
- IRS Forms 1040 Schedule C; IRS Forms 1040 Schedule F
- For a partnership: The partnership’s IRS Form 1065 (including K-1s)
- Bank statements
- Externally or internally prepared financial statements, such as income statements or profit and loss statements
- Point of sale (POS) report(s), including IRS Form 1099-K
If you are a brewpub, tasting room, brewery, winery, distillery, bakery or an inn, you will be subject to additional documentation requirements, which you can read about here.
4. Get ready to apply
The SBA recently published a sample RRF grant application, which will give you the opportunity to review the questions and information you will be required to address.
You also have a variety of ways to apply for your RRF grant. If your business is eligible, you can apply through SBA-recognized POS vendors or directly through the SBA via a forthcoming online application portal.
You can start the registration process through the online portal on Friday, April 30, as you wait for it to open. However, you’re not required to register if you plan to apply through a participating POS provider, including Square, Toast, Clover and NCR Corporation (Aloha).
The bottom line
Preparation is key to successfully applying for RRF grant funding in a timely manner. The SBA’s RRF page contains helpful information to support you in applying for your grant.
If you need assistance with the application process, you can enlist the help of a trusted expert, who can take the worry off your shoulders and allow you to focus on running your business.
Aprio is a nationally recognized leader in helping businesses maximize the benefits of COVID-19 relief programs and is a long-standing advisor to businesses in the food service industry. Through our services and expertise, we’re helping clients obtain nearly $1 billion in relief funding and supporting them in obtaining millions more.
To learn more about how we can help your business navigate the application process, contact us today.
Disclaimer for services provided relative to SBA programs and the CARES Act
Aprio’s goal is to provide the most up to date information, along with our insights and current understanding of these programs and regulations to help you navigate your business response to COVID-19.
The rules regarding SBA programs are constantly being refined and clarified by the SBA and other agencies In certain instances, the guidance being provided by the agencies and/or the financial institutions is in direct conflict with other competing guidance, regulations and/or existing laws.
Due to the evolving nature of the situation and the lack of final published rules, Aprio cannot guarantee that additional changes or updates won’t be needed or forthcoming and the original advice given by Aprio may be affected by the evolving nature of the situation.
You need to evaluate and draw your own conclusions and determine your Company’s best approach relative to participation within these programs based on your Company’s specific circumstances, cash flow forecast and business strategy.
In situations where resources are provided by third parties, those services should be covered under a separate agreement directly with that service provider. Aprio is not responsible for the actions of any other third party.
Aprio encourages you to contact your legal counsel to address the legal implications of the impact of the CARES Act and specifically your participation in any of the SBA programs.