Here’s what you need to know to get financial assistance under this program.
What is the Restaurant Revitalization Fund?
The FRR offers grants to help restaurants cover their loss of income related to the pandemic. Businesses might be eligible for up to $ 10 million in aid, but no more than $ 5 million per physical location.
Who can apply?
The Restaurant Revitalization Fund can be a lifeline for many businesses, but not all businesses are eligible. The fund, which opens May 3, offers a 21-day priority period for businesses where at least 51 percent of the owners are veterans, women and / or those who are socially or economically disadvantaged.
In general, companies that may be eligible for FRR grants include:
- Hostels with on-site food and drink, such as guesthouses
- Food trucks, food stalls and food carts
- Cellars and distilleries
- Breweries, tasting rooms, taprooms
- CafÃ©s, ice cream parlors, etc.
How to apply
How can the grants be used?
Money received under this program must be spent for expenses incurred between February 15, 2020 and March 11, 2021. Eligible expenses may include:
- Rent and utilities
- Commercial debts, including credit cards
- Real estate debts, including mortgage
- Construction and / or expansion of outdoor seating
- Business maintenance costs
- Food and drink costs for raw materials
- Overhead costs, including insurance, marketing costs, licenses, equipment, etc.
What do i need to apply?
Make sure to gather all of your business documents as soon as possible. Application portals could face high demand.
Applicants should be prepared to provide:
- Employer Identification Numbers (EINs) / Social Security Numbers / Tax Identification Numbers and Addresses for you and anyone who owns more than 20% of the business
- Any PPP loan number if your business received money through this program
- List of all affiliated companies
- Proof of your approved reorganization plan if you have declared bankruptcy
You will also need one of the following documents that show your business receipts and, if applicable, eligible expenses:
- Business income tax returns (IRS form 1120 or 1120-S)
- IRS Form 1040, Schedules C or F
- For partnerships, if applicable, IRS form 1065 (including K-1)
- Bank statements
- Financial statements, such as income statements or profit and loss accounts
- Point of Sale (POS) Report (s), IRS Form 1099-K
- For applicants who opened in 2020, three months of bank statements, 2020 federal income tax returns (produced or prepared but not yet filed), 2020 and 2021 point of sale reports, a CPA comfort letter, payroll (941), outside headquarters expenses (invoices / payments) and loan statements from the lender
Breweries, tasting rooms, taprooms, breweries, wineries, distilleries, bakeries or inns will also need documentation showing that on-site sales to the public account for at least 33% of gross revenue.
What if my business closes after receiving a grant?
All FRR money that has not yet been spent on qualifying expenses must be returned to the government at the time the business permanently closes or before March 11, 2023, whichever comes first.
Ashley Powdar is the Employer Content Manager for AARP’s Financial Resilience Team. She works with participants in the organization’s Employer Engagement program to promote the value of a multigenerational workforce. She also assists and reports on issues affecting small business owners.