SBA Opens Applications for Its $28.6 Billion Restaurant Revitalization Fund

The American Rescue Plan Act established the Restaurant Revitalization Fund (RRF) to provide funding to help restaurants and other eligible businesses keep their doors open. This program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023. Click here to apply.

For additional supplemental information:

  • Restaurant Revitalization Fund program guide
  • Restaurant Revitalization Fund sample application (SBA Form 3172)

    • The $28.6 billion program was established by the American Rescue Plan Act, P.L. 117-2, that became law in March. The RRF awards grants of up to $5 million per physical location and is capped at $10 million per entity and affiliates. Eligible entities that have experienced pandemic-related revenue loss include:

    • Restaurants;
    • Food stands, food trucks, and food carts;
    • Caterers;
    • Bars, saloons, lounges, and taverns;
    • Snack and nonalcoholic beverage bars;
    • Bakeries, brewpubs, tasting rooms, taprooms, breweries, microbreweries, wineries, and distilleries at which on-site sales to the public comprise at least 33% of the gross receipts;
    • Inns at which on-site sales of food and beverages to the public comprise at least 33% of gross receipts; and
    • Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products.

    How to apply:
    Eligible businesses can apply through SBA-recognized third-party point-of-sale vendors or directly through the SBA using the online application portal. Registration with SAM.gov is not required, and DUNS or CAGE identifiers are not necessary to apply for funding.

    To verify tax information, businesses will be required to submit IRS Form 4506-T, Request for Transcript of Tax Return, completed and signed by the applicant. This requirement can be satisfied by completing this form on the SBA platform. For gross receipts and eligible expenses documentation, any of the following documents may be submitted:

    • Business tax returns (IRS Form 1120, U.S. Corporation Income Tax Return, or IRS Form 1120-S, U.S. Income Tax Return for an S Corporation);
    • IRS Forms 1040, U.S. Individual Income Tax Return, Schedule C, Profit or Loss From Business; IRS Forms 1040, Schedule F, Profit or Loss From Farming;
    • For a partnership, the partnership’s IRS Form 1065, U.S. Return of Partnership Income (including Forms K-1, Partner’s Share of Income, Deductions, Credits, etc.);
    • Bank statements;
    • Externally or internally prepared financial statements such as income statements or profit-and-loss statements; and
    • Point-of-sale reports, including IRS Form 1099-K, Payment Card and Third Party Network Transactions.

    Eligible brewpubs, tasting rooms, taprooms, breweries, wineries, distilleries, and bakeries will need to submit documents showing evidence that on-site sales to the public comprised at least 33% of gross receipts for 2019. This may include Tax and Trade Bureau Forms 5130.9 or TTB. For businesses that opened in 2020, the applicant’s original business model should have contemplated at least 33% of gross receipts in on-site sales to the public.

    Eligible inns will need to provide documents showing that on-site sales of food and beverage to the public comprised at least 33% of gross receipts for 2019. For businesses that opened in 2020, the applicant’s original business model should have contemplated at least 33% of gross receipts in on-site sales to the public.
    SBA call center support is available at 844-279-8898, Monday through Friday, from 8 a.m. to 8 p.m. ET. Applicants also can get assistance through their local SBA district office.

    Paycheck Protection Program (PPP) is open to taking first draw applications

    SBA, in consultation with the U.S. Treasury Department, has opened the Paycheck Protection Program loan portal on Monday, January 11, 2021 at 9 am ET. It will initially accept First Draw PPP loan applications from participating CFIs, which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), and Microloan Intermediaries.

    Loan Details
    The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

    SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.

    • PPP loans have an interest rate of 1%.
    • Loans issued prior to June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years.
    • Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower’s loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (either 8 weeks or 24 weeks).
    • No collateral or personal guarantees are required.
    • Neither the government nor lenders will charge small businesses any fees.

      • How To Apply
      You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.If you wish to begin preparing your application, you can download the following PPP borrower application forms to see the information that will be requested from you when you apply with a lender:

    • Paycheck Protection Program First Draw Borrower Application Form (revised 01-08-21)
    • Paycheck Protection Program Second Draw Borrower Application Form (revised 01-08-21)
    • Supplemental Materials
    • Top-line Overview of PPP First Draw Loans
    • Top-line Overview of PPP Second Draw Loans
    • Frequently Asked Questions for Lenders and Borrowers (12-09-20)
    • How to Calculate Loan Amounts (06-26-20)
    • Frequently Asked Questions for Faith-Based Organizations Participating in the Paycheck Protection Program and Economic Injury Disaster Loan Program
    • Myth vs. Fact
    • Affiliation Rules
    • Paycheck Protection Program Affiliation Rules
    • Interim Final Rule for Applicable Affiliation Rules
      • Rural Small Business Relief Grant Opportunity

      Small businesses in rural communities are encouraged to apply in the next round of this nationwide grant program. The $18 million program is being administered through the Local Initiatives Support Corporation (LISC), the nation’s largest community development organization. LISC is offering $5,000-$20,000 grants aimed at helping small businesses in communities having a population of 50,000 or less. Grant funds can be used for business operating expenses that were not reimbursed through another federal grant program, and include wrap-around technical assistance. The application window for the next round runs January 26, 2021 – February 2, 2021. To learn more, please visit the website here.

      How to Get Your PPP Loan Forgiven

      Paycheck Protection Program loans were a popular option for businesses hoping to survive COVID-19-related shutdowns. Here is what businesses need to do to get their PPP loans forgiven.
      To qualify for PPP loan forgiveness, the SBA set up various requirements that must be fulfilled. Effectively, forgiveness is granted to employers that kept or rehired employees while also maintaining general salary levels from before the pandemic. Employers can still be eligible for partial forgiveness if they don’t meet all of these criteria, such as if full-time headcount declined or salaries decreased somewhat.

      Requirements include:

    • Funds are allowed to be used for payroll costs, rent, utilities and interest on mortgages.
    • At least 60% of loan must be used for payroll costs.
    • While the loan is being used, employers must attempt in good faith to maintain similar levels of employment and pay that they had prior to the pandemic.
    • For additional information on the PPP Loan Forgiveness process, go to the U.S. Chamber site or to be directed to the PPP Loan Forgiveness application, click here.
      Assessor COVID-19 Business Review

      If COVID-19 has impacted your business financially, the Ascension Parish Assessor’s Office may be able to offer assistance after review of your business’ loss and its impact on your property. As the owner, you must be able to show at least a three year history of financial documents to determine the economic impact was due to the pandemic, provide details regarding any government assistance received, and any other information needed after an in person meeting. Adjustments will be made on a case by case basis. If you feel your business meets the criteria for assistance, please contact the Assessor’s Office to schedule a meeting at your place of business, for your convenience. Call (225) 647-8182 or (225) 473-9239 by August 31 to schedule an appointment.

      This COVID-19 economic assistance is afforded to Ascension Parish businesses as a result of the combined efforts of the Assessor and other local parish government agencies.

      Resources and Fliers:

      Paycheck Protection Program: Update June 18, 2020
      South Central Planning and Development Commission, click Corona Recovery Loan Program.
      For information on what you should know about the ADA, the Rehabilitation Act and the Coronavirus, click here.
      For information on the Families First Coronavirus Response Act (FFCRA), click here
      For information on opening restaurants, click on the Fire Marshall’s Guidance for Restaurant / Food Service Outdoor Seating Criteria
      Coronavirus Economic Stabilization Act of 2020 (“CESA”)
      Economic Injury Disaster Loan Update April 24, 2020
      Employee Retention Tax Credit Guide
      Louisiana Loan Portfolio Guaranty Program
      Louisiana Loan Portfolio Guaranty Program (LPGP) – FAQs
      U.S. Chamber of Commerce Foundation’s list of small business resources for coronavirus assistance
      Senate Committee on Small Business & Enterpreneurship released the Small Business Owner’s Guide to the CARES Act.
      Small Business Guide and Checklist
      To read a summary of H.R. 748 from Senator Bill Cassidy Click here.
      Conronavirus Aid, Relief, and Economic Security (CARES) Act has passed.

      Information and Guidance for Businesses on Federal Aid During COVID-19:

      America’s Small Business Development Centers released a spreadsheet last week that compares all of the currently available SBA programs, including the Economic Injury Disaster Loans and Paycheck Protection Program. You can access the document by clickinghere. NOTE: Businesses are strongly urged to discuss all of these options directly with their local bank, accountant, or attorney for the best advice and guidance.

      Economic Injury Disaster Loan:

      Available now at Apply here.

    • Interest Rate: 2.75% for non-profits, 3.75% For-Profits
    • Up to $2 Million in Assistance (Up to $500,000 for first 6 months)
    • 30-Year term
    • One year of deferred payments

    For more information on the current SBA Disaster loan program requirements: COVID-19 Economic Injury Disaster Loans.

    Paycheck Protection Program:
  • Interest Rate of 4% for both non- and for-profit businesses
  • Up to $10 Million in assistance
  • 10-Year Term
  • 6 Months of Deferred Payments
  • Possible forgiveness plan for first 8 weeks if you meet qualifications (forgiveness includes payroll, utility bills, mortgage/rent)
  • 7(a) loans will be available through approved local banks in about 2 weeks

    • Required Documents Checklist

  • Payroll summary report for last 12 months
  • IRS Form 940 & 941 (payroll tax forms)
  • 2019 business tax returns (or 2018 return if 2019 is not yet filed)
  • Statement of payroll benefits offered to employees
  • Evidence of payroll taxes, inusrance premiums and benefits paid
  • Driver’s licenses for all owners with 20% or greater ownership stake

    • Entity formation documents:

  • Articles of Incorporation (or Articles of Organization)
  • Bylaws and Operating Agreement
  • Tax ID Number (Employer Identification Number)
  • Board of Director Minutes (if applicable)
  • Ownership Verification (if applicable)
    • QUESTIONS?
      Curious about what loan option is best for you? Look at this SBA chart for a quick reference guide.

    Ascension Economic Development Corporation staff members are available to assist you Mondays and Wednesdays 9:00 am – 12:00 pm. For alternate time frames better suited to your schedule, please call (225) 644-1750 or email info@ascensionedc.com to schedule an appointment.