UPDATE: On 3/30/21, SBA has announced that Restaurant Revitalization Fund applicants no longer need to sign up for a SAM.gov account or have a DUNS number. This change will not impact your participation in the RRF if you’ve already obtained these numbers. For more info, check out this resource provided by the IRC
Recently the Restaurant Revitalization Fund (RRF) has been signed into law as a part of the American Rescue Plan. The RRF will provide $28.6 billion tax-free grants for hard-hit restaurants with 20 or fewer locations.
While the RRF will be administered by the U.S. Small Business Administration (SBA), the same program that issued PPP loans, there are several points that make the RRF grants significantly different from the previous program.
- The application will require different steps and new forms (read below)
- Unlike the PPP, you do not have to pay back the RRF grant
- The amount you get will be dependent on your COVID-19 related revenue loss
- Eligible businesses may be given up to $10 million, with a $5 million limit for each physical location
- Small businesses owned by women, veterans, and socially/economically disadvantaged persons will be prioritized for the first 21-days
- Grants will no longer be available once the $28.6 billion fund runs out
Considering that last bullet point, we strongly recommend restaurant owners take all the necessary steps to have their forms and applications ready for the grant before the launch date. The RRF application window (as of March 24, 2021) is not yet open, but we can expect these grants to be in high demand, with risk of it running out very quickly.
Here’s what you should do ASAP, according to the Sean Ludwig, from U.S. Chamber of Commerce:
- Create a login.gov user account. This login account can help you interact with the SBA and other federal agencies.
- Sign up to receive a DUNS number, a number that is required for all businesses who sign up for federal contracts or grants. You will also need all of the information listed below to obtain a DUNS number:
- Name of organization
- Organization address
- Name of the chief executive officer (CEO) or organization owner
- Legal structure of the organization (e.g., corporation, partnership, proprietorship)
- Year the organization started
- Primary type of business
- Total number of employees (full and part-time)
- Register with SAM by visiting the SAM website with the following information:
- login.gov email
- DUNS number
- Standard business info such as your Taxpayer Identification Number (TIN) or Employment Identification Number (EIN)
Please note that when you register a new entity in SAM to do business with the U.S. government, SAM requires a notarized letter stating you are the authorized entity administrator before SAM will activate your entity registration in SAM.gov.
When your organization registers with SAM, you must designate an EBiz POC.
- Work with an accountant to prepare paperwork that clearly shows your gross revenue loss in 2020 as compared to 2019.
Here are some resources for your reference:
U.S. Chamber of Commerce page about RRF (https://www.uschamber.com/co/run/business-financing/restaurant-revitalization-fund-grants-guide?utm_source=rss&utm_medium=google-run&utm_campaign=feeds-google-run)
For general instructions on how to obtain DUNS number and SAM: https://www.grants.gov/web/grants/applicants/organization-registration.html
RRF Fact Sheet: https://restaurantsact.com/wp-content/uploads/2021/03/UnderstandingRRF.pdf
Restaurant Revitalization Fund Next Steps Webinar: https://www.restaurant.org/events/learning/webinars
National Restaurant Association Powerpoint Slides https://on24static.akamaized.net/event/30/65/91/9/rt/1/documents/resourceList1615818733228/webinarslides1615825761148.pdf