• The SBA plans to roll out the Restaurant Revitalization Grant (RRG) as soon as early April
  • Who’s eligible and who’s not
  • How is the RRG calculated and how can the funds be used?

The Restaurant Revitalization Plan is a $28.6 billion program designed specifically to provide relief to restaurants who have been impacted by COVID-19 regulations. Applicants may receive grants up to $10 million, capped at $5 million for single stores. This grant will provide funds to make up for “pandemic-related revenue loss” equal to the 2019 gross receipts.

Who’s Eligible?

The grant has set aside $5 billion to assist smaller applicants whose 2019 revenues were less than $500,000. This budget for smaller restaurants will be available for 60 days from the date the law is signed.

The SBA assures that the remaining $20 billion will be distributed in an “equitable manner to eligible entities of different sizes based on annual gross receipts.”

How Are Grant Amounts Calculated?

The RRG will provide funds to make up for pandemic-related revenue loss. As such, funds will equal the difference between 2020 and 2019 gross receipts.

Any PPP funds (including PPP1 and PPP2) received will also be subtracted from the total RRG amount.

Recipients may also claim an Employee Retention Credit while claiming the RRG, however, wages used when calculating the ERC may not be paid with grant funds. The RRG is also fully tax-exempt.

Are There Any Restrictions on RRG?

Ineligible restaurants include those that have over 20 locations, are publicly traded, and/or have received a Shuttered Venues Operators Grant (SVOG).

How Can Grant Funds Be Used?

Grant funds can be used for a variety of business operating costs such as payroll, mortgage payments, rent, utilities, supplies (including personal protective equipment and cleaning materials), and paid sick leave.
Funds can not be used to pay wages that were used when calculating the ERC.

Questions? DSJCPA is here to help your restaurants receive maximum benefits available through the SBA’s COVID-19 relief funds. Call us at 516-541-6549 and visit our website for more COVID-19 news and information.

Devin McQuillan
Associate, Creative Solutions

Contact:
516-541-6549 | Email

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