The Restaurant Grants are Nearly Here

We have been closely following what is going on with the Restaurant Revitalization Fund Grant or RRFG authorized by the latest relief bill signed by Congress in March. Everyone has questions about when it will actually be open for applications.

The short answer is this. We anticipate an official application, website and program guide THIS WEEK or NEXT WEEK at the latest.  

This is phenomenal news for those out there who want to take advantage of this $28.6 billion dollar grant relief program specifically for the restaurant industry and the restaurant owners that are struggling to overcome the lingering effects of the virus on their business and in many states, remain at limited capacity.

Here are the latest details on the grants. The SBA will be administering this process and as stated above, they are in process on the official and final application, their portal or website and a full program guide that should be available next week at the latest. They have been in conversations with the National Restaurant Association and are very close to this point.

Many so-called "grant writers" or "experts" are jumping in and starting to call and email restaurant owners about providing assistance. We fully expect this to be offered at a fee and in studying the proposed application and requirements, this should not be necessary. This appears to be as straightforward (if not more so) than the PPP applications that restaurant owners already went through. We would recommend you say "no" to any assistance if it comes with a fee.

The first 21 days of the program will prioritize Minority-Owned, Women-Owned Businesses and Veteran-Owned Businesses. We have learned that it is likely that the SBA will allow “Self-certification for Prioritization Eligibility” for targeted groups. This is good as it is built into the application and requires only that you attest to your status under penalty of perjury.

Everyone wants to know what the application form will take. Here is a link to a very preliminary version that is not yet finalized with the SBA. Restaurant owners should download and study it but keep in mind that THIS IS NOT FINAL.  Start pulling together the information that will be needed so that you are first to apply.

Restaurant owners should also gather the basic financial information you would need for any loan or business inquiry. I anticipate you will need the following at a minimum.

·       Business tax returns (IRS Form 1120 or IRS 1120-S)

·       IRS Forms 1040 Schedule C; IRS Forms 1040 Schedule F

·       For a partnership: 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 report(s), including IRS Form 1099-K T

·       IRS Form 4506-T

The last item is the IRS Form 4506-T. It's available for download from the IRS at this link and is self-explanatory. This is a form commonly used when we sell restaurants that gives the requesting person (the SBA in this instance), the ability to pull your tax returns directly from the IRS and confirm the information you provide (match it).  

There are also some recent updates issued by the National Restaurant Association on the program that include changes to eligible entities. The “Eligible entity” definition may be changing if you are a bakery, brewpub, brewery, distillery, taproom or winery with onsite sales to the public that are less than 33% of your gross receipts. For inns, onsite sales of food and beverage to the public may need to comprise at least 33% of gross receipts.

In addition, permanently closed entities might be ineligible and bankrupt entities without approved plans for reorganization may also be ineligible.

Funds will be in high demand. This restaurant broker is committed to getting the word out on this program so please share this on LinkedIn and all social media with anyone who needs assistance in the industry.