Here is the latest update for Restaurant Owners on the Restaurant Revitalization Fund Grant (RRFG) program that We Sell Restaurants has been carefully following for our clients and the industry.
The National Restaurant Association has been in ongoing discussions with the Small Business Administration or SBA since this was signed into law. They are working closely to define the parameters and push to get the portal opened. Here are answers to the most pressing questions from we are receiving at We Sell Restaurants.
When will restaurant owners be able to apply?
We anticipate an official application, website and program guide THIS WEEK or NEXT WEEK at the latest.
Will I be able to apply immediately?
We expect there will be some time to read and understand the process before the portal opens for applications.
Where will I apply?
The SBA is building a website for direct application. We are hoping to see that become available in the next two weeks.
Do I need help? I am getting calls from “experts” saying they can assist.
This should be a straightforward process and there is no reason to hire someone to help you. Your bookkeeper or CPA should be able to assist without giving away any funds to so-called “grant writers” on this.
What about the 21-day Prioritization for Minority, Women-Owned Businesses and Veteran-Owned Businesses?
This remains in place. 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 law.
What does the application look like?
We Sell Restaurants has received a PRELIMINARY VERSION that is not yet finalized with the SBA that is posted at this link. Download and study it but keep in mind that THIS IS NOT FINAL. It should be close however, so our restaurant owners are getting the first look at this. Start pulling together the information that will be needed so that you are first to apply.
What information 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 IRS Form 4506-T?
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).
Where can I get a copy of the 4506-T Form?
Here is a link to the form at the IRS.gov website and the 4506-T form.
Are there any updates to the information We Sell Restaurants has been sharing?
Yes. Though these have not been 100% approved, we are learning that the following are under advisement and likely to be finalized.
The new covered period (for use of the grant) might be extended 14 additional months (as allowed by the legislation) until March 11, 2023.
Are there any changes to eligible entities?
Yes. 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.
Permanently closed entities might be ineligible.
Bankrupt entities without approved plans for reorganization might be ineligible.
Is there a maximum and minimum amount I can receive?
The minimum grant award is likely to be set at $1,000.
The maximum grant award is the same at $5 million.
Anything else I should know?
Funds will be in high demand. We Sell Restaurants will continue to keep you posted and assist our restaurant owners in getting access to this valuable information.
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