On April 27, 2021, the Small Business Association (SBA) announced that it will begin accepting Restaurant Revitalization Fund (RRF) applications on May 3, 2021. This comes as welcome news to the hospitality industry, which has been anxiously awaiting relief since the American Rescue Plan Act became law on March 11, 2021, and established the $28.6 billion RRF. Eligible entities can begin the registration process starting April 30, 2021, at 9:00 a.m. EDT. Restaurant operators can apply through SBA-recognized point-of-sale (POS) vendors, directly through the SBA RRF portal, or by telephone at (844) 279-8898.
As we noted in our April 23, 2021, alert, early preparation for the application process is key. To that end, the SBA recommends that applicants familiarize themselves with the process and take the following specific steps:
- Register for an account at restaurants.sba.gov starting Friday, April 30, 2021, at 9:00 a.m. EDT.
- Review the official guidance, including program guide, frequently asked questions, and sample application.
- Prepare the required documentation.
- Work with a POS vendor or visit the SBA RRF portal to submit the application when the application portal opens.
Remember that the SBA will prioritize distributing funds to small businesses that are at least 51 percent owned and controlled by women, veterans, and socially and economically disadvantaged individuals and will distribute funds only to approved applicants that qualify under a prioritized group during the first 21 days of the program. Nevertheless, the SBA will accept applications from all applicants beginning May 3, 2021.
The RFF will provide eligible entities that serve food or drink (e.g., restaurants, food stands, bars, wineries, etc.) with funding equal to their pandemic-related revenue loss up to $10 million per business and affiliated businesses and no more than $5 million per physical location. Recipients are not required to repay the funding as long as the funds are used for eligible purposes by March 11, 2023.
Barclay Damon’s Hotels, Hospitalities, and Food Service Team is available to answer any questions you may have about the RRF application process and to assist you in preparing, completing, and submitting a timely application.
If you have any questions regarding the content of this alert, please contact Scott Rogoff, Hotels, Hospitality & Food Service Team leader, at srogoff@barclaydamon.com, or another member of the firm’s Hotels, Hospitality & Food Service Team.
We also have a specific team of Barclay Damon attorneys who are actively working on assessing regulatory, legislative, and other governmental updates related to COVID-19 and who are prepared to assist clients. Please contact Yvonne Hennessey, COVID-19 Response Team leader, at yhennessey@barclaydamon.com, or any member of the COVID-19 Response Team, at COVID-19ResponseTeam@barclaydamon.com.