We are moving ever closer to seeing funding take place under the Restaurant Revitalization Funding Program passed by Congress last month. The SBA website is NOW LIVE at www.restaurants.sba.gov No applications are being accepted YET but applications will be opening soon.
The final application form is available at this link. Our advice for restaurant owners is to go ahead and begin filling this out now to be sure you have everything that is requested. We anticipate you will be able to complete this with basic information from your business like: 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. You may also need to complete IRS Form 4506-T.
The SBA has issued an official Program Guide available at this link. Read this to understand what the team at We Sell Restaurants has been sharing with restaurant owners over the past few weeks about the Restaurant Revitalization Funding Program.
We Sell Restaurants will continue to update the industry on all information as soon as we get the details. Overall, this is a $28.6 Billion grand program for restaurant owners. Some of the money ($5 billion) is reserved for those of lower volume (defined as $500,000 or less in sales). The purpose of the grant is to help restaurant owners bridge the gap between 2020 and 2019 sales (minus any PPP funds received). For our calculator on the grant amount, visit this link.
The program is specific about where funds can be used. A restaurant owner may use the grant 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 legislation required that certain applications get priority in the first three weeks (or first 21 days). These groups are: Women Owned, Veteran Owned or Socially and Economically Disadvantaged. The SBA defines socially and economically disadvantaged groups as: Black Americans, Hispanic Americans, Native Americans, Asian Pacific Americans, Subcontinent Asian American as well as Americans with Disabilities (as stated under the Act).
You can still meet this criteria if there is shared ownership as long as 50% or more are part of the groups mentioned above. Owners will "self-certify" to their 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%.
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