2021 SBA Grants For Bakeries, Restaurants & Bars
The Small Business Administration has released more information about the Restaurant Revitalization Fund (RRF) grant program. This program is very different and better than the PPP last year - it seems easier to apply to, gives you a grant (not a loan), and you can use the money for almost any business expense over the next two years.
WHAT IS THIS?
The new RRF program provides grants (not loans) to restaurants, bars & bakeries.
The grant can be used to pay for nearly any business-related expense, including payroll, mortgage or rent payments, debt payments (including credit cards), etc.
HOW MUCH MONEY CAN I GET?
You will need to use the grant's formula to determine how much you can get:
2019 gross receipts minus 2020 gross receipts minus PPP loan amounts
(Example: You sold $100,000 of food in 2019, and then sold only $50,000 of food in 2020 and received $25,000 in PPP, then you can receive a grant of $25,000.)
If you opened in 2019 or later, you can still apply but you have a different formula (click here for details)
You will have until March 2023 to spend any awarded grant money.
WHEN TO APPLY
The application is expected to open in the next week or two. It is still not yet available.
The money is expected to run out, so prepare to apply now! And be ready to submit your application once the application opens.
Every eligible business can apply once the application opens, BUT for the first 21 days of the program will fund applications from Women, Veterans, and Minority business owners.
HOW TO APPLY
You can apply through SBA-recognized Point of Sale Restaurant Partners or directly via SBA in a forthcoming online application portal.
Registration with SAM.gov is not required. DUNS or CAGE identifiers are also not required. Go here for the application or call by phone at (844) 279-8898.
You can view a sample application and begin preparing and gathering required information here.
WHAT DOCUMENTS DO I NEED
You will need to include documents with your application.
Additional documentation required:
Verification for Tax Information: IRS Form 4506-T, completed and signed by Applicant. Completion of this form digitally on the SBA platform will satisfy this requirement.
Gross Receipts Documentation: Any of the following documents demonstrating gross receipts and, if applicable, eligible expenses
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
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 33.00% of gross receipts for 2019, which may include Tax and Trade Bureau (TTB) Forms 5130.9 or TTB. For businesses who opened in 2020, the Applicant’s original business model should have contemplated at least 33.00% of gross receipts in onsite sales to the public.
Head to SBA for more information.