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Updated: Restaurant Revitalization Fund Grant to Provide $28+ Billion in Relief

April 30, 2021

Update from the SBA

SBA will begin accepting applications via the application portal on Monday, May 3 at 12 p.m. EDTThe application portal will remain open to any eligible establishment until all funds are exhausted.

In preparation, qualifying applicants should familiarize themselves with the application process in advance to ensure a smooth and efficient application. Follow the steps below. 

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The Restaurant Revitalization Fund Grant (“RRF”) was established by the American Rescue Plan Act (“ARP”) to provide 28.6 Billion Dollars in available funds to eligible entities that suffered pandemic-related revenue loss.  The ARP defines an “eligible entity” as a restaurant, food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting room, taproom, licensed facility or premise of a beverage alcohol producer where the public may taste, sample, or purchase products, or other similar place of business in which the public or patrons assemble for the primary purpose of being served food or drink.  It does not include government-run businesses or restaurants that own or operate more than 20 locations, as well as other exclusions as set forth in the RRF.  There are priorities for certain applicants such as SDVOSB, women, and/or socially and economically disadvantaged owned establishments.

An eligible restaurant can determine the amount of its grant award by subtracting its 2020 gross receipts from its 2019 gross receipts.  An eligible Applicant can receive an award of up to $5,000,000.00 per location and a maximum award of not to exceed $10,000,000.00 total for the Applicant and any affiliated businesses.  If an eligible restaurant has already obtained a PPP loan, the amount of the PPP loan will be deducted from the amount of the RRF grant award.

Restaurants can begin preparing for the RRF Application by analyzing their 2019 and 2020 gross receipts and reviewing the draft application released by the Office of Management and Budget. Unlike the SVOG program, obtaining a DUNS or CAGE Number and registering with the System for Award Management (SAM) is not required.  If the SBA changes this registration waiver, however, it takes approximately ten (10) business days to register. 

Shulman Rogers can help navigate the challenging and ever-changing landscape of the RRF Grant application process.  Having guided clients through First and Second Draw PPP Loans, as well as the Shuttered Venue Operators Grant, we have a broad understanding of the Small Business Administration’s rules, procedures and requirements.  Our SBA attorneys can also provide a detailed affiliate analysis to restaurants and entities that have multiple locations, in order to ensure compliance with the Small Business Administration’s affiliation rules.