The U.S. Small Business Administration (SBA) is awarding funding through the Restaurant Revitalization Program to restaurants, bars, and other similar places of business that serve food or drink. The purpose of this funding is to provide support to eligible entities that suffered revenue losses (up to $10 million per business and no more than $5 million per physical location) related to the COVID-19 pandemic. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.
Registration for the SBA application portal will begin on Friday, April 30, 2021, at 9 am ET. Applications will open on Monday, May 3, 2021, at noon ET. The deadline to apply is Monday, May 24, 2021, at 8 pm ET.
Click here to view the sample Restaurant Revitalization Fund application.
Who can Apply
Eligible entities who have experienced pandemic-related revenue loss include:
- Food stands, food trucks, food carts
- Bars, saloons, lounges, taverns
- Snack and nonalcoholic beverage bars
- Bakeries (onsite sales to the public comprise at least 33% of gross receipts)
- Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts)
- Breweries and/or microbreweries (onsite sales to the public comprise at least 33% of gross receipts)
- Wineries and distilleries (onsite sales to the public comprise at least 33% of gross receipts)
- Inns (onsite sales of food and beverage to the public comprise at least 33% of gross receipts)
- Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products
How to Apply
There are 3 ways to apply for the Restaurant Revitalization Fund:
- Through a recognized SBA Restaurant Partner
- Through SBA directly at restaurants.sba.gov
- Telephonically at (844) 279-8898
Registration with SAM.gov is not required. DUNS or CAGE identifiers are also not required.
If you would like to prepare your application, view the sample application form. You will be able to complete this form online. Please do not submit RRF forms to SBA at this time.
Priority period (Days 1 through 21)
SBA will accept applications from all eligible applicants, but only process and fund priority group applications.
Priority groups include:
- A small business that is at least 51 percent owned by one or more individuals who are:
- Women, or
- Veterans, or
- Socially and economically disadvantaged (see below).
- Applicants must self-certify on the application that they meet eligibility requirements.
- Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities.
- Economically disadvantaged individuals are those socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area who are not socially disadvantaged.
During this period, SBA will fund applications where the applicant has self-certified that it meets the eligibility requirements for a small business owned by women, veterans, or socially and economically disadvantaged individuals.
- $5 billion is set aside for applicants with 2019 gross receipts of not more than $500,000
- An additional $4 billion is set-aside for applicants with 2019 gross receipts from $500,001 to $1,500,000
- An additional $500 million is set-aside for applicants with 2019 gross receipts of not more than $50,000
*SBA reserves the right to reallocate these funds at the discretion of the Administrator.
Open to all applicants (Days 22 through funds exhaustion)
SBA will accept applications from all eligible applicants and process applications in the order in which they are approved by SBA.
- Applicant: The Applicant is the entity applying for Restaurant Revitalization funding.
- Tax Identification Number (TIN): The Applicant must provide the TIN for the Applicant business and all equity owners of 20% or more. TINs may be Employer Identification Numbers, Social Security Numbers, or Individual Taxpayer Identification Numbers assigned by the Internal Revenue Service (IRS). The total equity reported across the 20% or more owners do not have to add up to 100% of all equity outstanding, as long as all 20% or more owners are listed in the application. If no owner has at least 20% ownership of the Applicant, you must list enough owners whose combined equity represents at least 20% of the ownership of the Applicant.
- Owners: Applicants must list all owners of 20% or more of the business on the application. The listing for each owner must include the owner’s Employer Identification Number (EIN), Social Security Number (SSN), or Individual Taxpayer Identification Number (ITIN). If an owner of 20% or more of the business does not have an SSN or ITIN, the business is not eligible.
Please ensure you have the following information before you start:
- Business information – including owners and their tax identification information
- 2019 and 2020 Tax Return Information
- Relevant PPP Loan Information (including SBA Number and Amount)
- Bank Account (Operating Account Information)
- Bank Account Online Credentials for Secure Linking to the SBA
For all Applicants, the following documentation is required:
- The application: SBA Form 3172, completed, initialed, and signed.
- Verification for Tax Information: IRS Form 4506-T, completed and signed by Applicant.
- Gross Receipts Documentation: Any of the following documents demonstrating gross receipts and, if applicable, eligible expenses:
- Business tax returns (IRS Form 1120 or IRS Form 1120-S);
- IRS Form1040 Schedule C; IRS Form 1040 Schedule F;
- For a partnership: partnerships 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.
In addition to the documents above, for applicants that are a brewpub, tasting room, taproom, brewery, winery, distillery,
or bakery: documents evidencing that onsite sales to the public comprise at least 33% of gross receipts for 2019. These may include 2019 Tax and Trade Bureau (TTB) Forms filed, state or local government forms filed, or internally created reports from inventory management, sales reporting, or accounting software.
In addition to the documents above, for applicants that are an Inn: documents evidencing that onsite sales of food and beverage to the public comprise at least 33% of gross receipts for 2019. These may include internally created revenue reports or accounting reports.
Calculation of Funding Amount
The SBA may provide funding of up to $10 million per business and no more than $5 million per physical location for Applicants who meet eligibility requirements. The minimum funding amount will be $1,000; therefore, applications requesting less than $1,000
(net required reductions) in funding will not be accepted or approved. For purposes of calculating the funding amount, “in operation” means the day the entity started making sales.
Corrections following submission and pre-award funding will require Applicant to re-visit the application portal or call the support hotline to submit the correction, new documentation, and initiate a restart of the timeline for review and payment. The SBA will not allow corrections to awards that have been paid to awardees.
Calculation 1: Applicants that were in operation (making sales) prior to or on January 1, 2019
2019 gross receipts – 2020 gross receipts – PPP loan amounts =Total
Calculation 2: Applicants that began operations (making sales) partially through 2019
(Average 2019 monthly gross receipts x 12) – 2020 gross receipts – PPP loan amounts = Total
Calculation 3: Applicants that began operations (making sales) on or between January 1, 2020, and March 10, 2021; and applicants not yet opened but have incurred ineligible expenses
Amount spent on eligible expenses between February 15, 2020, and March 11, 2021 – 2020 gross receipts – 2021 gross receipts (through March 11, 2021) – PPP loan amounts = Total
Calculation 4: Applicants that operate multiple locations using different calculations
Use separate calculation methods for each location then add the amounts together.
For example: A restaurant owner has three locations: a location that has been open since 2010 (Location 1), a location that has been making sales as of February of 2019 (Location 2), and a location that has been purchased but is still in the process of opening (Location 3). The owner would use the following calculations:
Calculation 1 for Location 1 + Calculation 2 for Location 2 + Calculation 3 for Location 3 = Total
Eligible Use of Funds
Funds may be used for specific expenses including:
- Business payroll costs (including sick leave)
- Payments on any business mortgage obligation
- Business rent payments (note: this does not include prepayment of rent)
- Business debt service (both principal and interest; note: this does not include any prepayment of principal or interest)
- Business utility payments
- Business maintenance expenses
- Construction of outdoor seating
- Business supplies (including protective equipment and cleaning materials)
- Business food and beverage expenses (including raw materials)
- Covered supplier costs
- Business operating expenses
Timeframe for Using Funds
Awardees must use all Restaurant Revitalization funds by March 11, 2023, on eligible expenses incurred beginning on February 15, 2020, and ending on March 11, 2023. If the business permanently closes, the covered period will end when the business permanently closes or on March 11, 2023, whichever occurs sooner. Awardees that are unable to use all Restaurant Revitalization funds on eligible expenses by the end of the covered period must return any unused funds to the government.
As part of the Restaurant Revitalization Fund, the SBA will directly disburse proceeds to the applicant’s operating account.
- For your protection, the SBA requires disbursement to be placed into the Applicant’s commercial business account. Using the SBA automatic linking service will expedite this process.
- In cases of sole proprietors operating without a commercial account, the SBA will require supporting documentation to demonstrate this account is utilized for restaurant operations, and it is owned by the sole proprietor. SBA will not allow funding accounts with limited (less than 3 months) history or unrelated ownership to the Applicant. The SBA platform will reinforce these controls as part of your application process.
- Failure to align these payment rules will delay applicant funding.
Local Technical Assistance
The following organizations offer free technical assistance to local businesses: