There is still no exact date on when restaurant owners can apply for the Restaurant Revitalization Fund Grants, but we are getting more information each day. We Sell Restaurants will continue to update the industry on all information about this program.
As a reminder.
- There has been $28.6 Billion approved in grants for restaurant owners overall.
- $5 Billion is reserved for restaurants with sales of $500,000 or less in 2019
- This is intended to make up the difference between 2020 and 2019 sales (minus any PPP funds received). For our calculator on the grant amount, visit this link.
- The funds can be used for: payroll; principal or interest on mortgage obligations; rent; utilities; maintenance including construction to accommodate outdoor seating; supplies; food and beverage inventory; operational expenses; paid sick leave; and any other expenses that the SBA determines to be essential to maintaining operations.
THE LATEST UPDATES
There is no firm date on when they will begin but the SBA advised We Sell Restaurants that this is, “a priority for the agency” and other are reporting it is “imminent.” We estimate they will launch next week. They have been training internally to get ready for the applications across 68 SBA business offices around the country.
We also know that the application will EVENTUALLY be online at www.restaurants.sba.gov This link is NOT LIVE yet but you can go ahead and bookmark it as that is where you will apply.
The SBA is also publishing an interface into POS systems for the application process. They are working with brands like Square, Clover, Aloha, and Toast, where restaurant operators will be able to use that to submit applications.
Two weeks after applications with supplementary materials are posted on restaurants.sba.gov (including the trial period), they will begin distributing funds. The final version of the application is not yet available but We Sell Restaurants has a draft version previously posted live at this link.
There is a lot of discussion around when you should apply. Everyone should apply AS SOON as the website is live. Do not wait 21 days if you do not fall into the groups that are prioritized in the first three weeks of the program. Make sure you apply as soon as possible so you are in the pipeline. We do not anticipate they will have enough funds to meet demand.
The applications that will receive priority for the first 21 days will be those that are Women Owned, Veteran Owned or fall into a Socially and Economically Disadvantaged category. The SBA defines socially and economically disadvantaged groups as:
- Black Americans
- Hispanic Americans
- Native Americans
- Asian Pacific Americans
- Subcontinent Asian American
- Americans with Disabilities (as stated under the Act)
If you are a Women Owned, Veteran Owned or fall into these groups, you will “self-certify” this on the application as ownership of more than 50% falling into these categories. If there are multiple partners in your group, you may still qualify. For example, 5 operating partners with 20% ownership each with three falling into these groups would equate to 60% eligible or more than 50%.
Frequently Asked Questions:
When can I apply?
We anticipate they will open applications in the next week or so, but it depends on the SBA.
Do I wait to apply if I don’t fall into the eligible categories that will be given priority in the first 21 days?NO. Apply the first day you can.
What will I need?
- 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
What is the minimum grant level available?
What is the maximum?
Will everyone get money if they apply?
Sadly, we believe these funds will be depleted quickly so we don’t think everyone will get funding.
If I had to permanently close my business, am I eligible?
No. If an entity is permanently closed or filed for bankruptcy (Chapter 7, 11, 12, or 13), it is not eligible.
Will these funds be used up by the “bigger operators?”
The SBA is limited these funds to operators with 20 stores or less. You cannot qualify if you are a publicly traded company or if you have a pending Shuttered Venues Operations Grant.
Will my bank handle this like they did the PPP money?
No. This is being handled 100% through the SBA.
Is this taxable money?
No. Grants will not be taxed as income.
Where can I get the most up to date information?
We Sell Restaurants is committed to providing information to the industry on this topic through our email, blog and social media channels. You can also get updates from your state restaurant association and through the National Restaurant Association.
We Sell Restaurants is the nation’s largest business broker franchise focused exclusively on the sale of restaurants, with 20 years of experience in helping buy, sell and lease hospitality locations. We Sell Restaurants and its franchisees have sold thousands of restaurants across the county and maintain a listing inventory of more than $120 million online at their powerhouse restaurant for sale marketplace, including independent and restaurant franchises for sale. We Sell Restaurants is offering franchise opportunities for their brand in select market areas. For more information, visit www.wesellrestaurants.com