Restaurant Revitalization Fund
Congress included $28.6 billion in the U.S. bailout for the Small Business Administration (SBA) to create and administer the Restaurant Revitalization Fund (RRF) to provide additional relief to hospitality businesses that derive the majority of their income from direct sales to consumers, on site. Sales. The language is derived from the RESTAURANTS Act (HR793/S.255).
The program came into effect at the beginning of May and the application process closed on May 24, 2021. During that time, 372,000 applications were submitted, representing more than $76 billion in requested funds, far exceeding the $28.6 billion originally budgeted by Congress for the program.
To help ensure that every eligible business has access to the funds, Congress introduced several pieces of legislation to fully fund the Restaurant Revitalization Fund.
Despite bipartisan support, the legislation failed to pass in both houses. The US House of Representatives passed the Relief for Restaurants and other Hard Hit Small Businesses Act in April 2022, but the Senate failed to get the 60 votes needed to avoid a filibuster on their legislation, the Small Business COVID Relief Act of 2022. Opposition to the legislation stems from concern over the lack of compensation for funding the bill.
Without additional funding, hundreds of thousands of small hospitality businesses that qualify for funding through the Restaurant Revitalization Fund will not receive the relief requested. Breweries and other hospitality businesses have been particularly hard hit by COVID-19 and are just beginning to recover.
Members of Congress need to hear from small independent breweries about their support for the Restaurant Revitalization Fund Replenishment Act. To get in touch with your elected officials, you can use the Brewers Association website congress contact form.
Ask your legislators to support the addition of funds to the Restaurant Revitalization Fund.
Key legislation and sponsors
Small Business COVID Relief Act of 2022 – See current legislative action and co-sponsors of S. 4008
Sen. Roger Wicker (R-Miss.)
Senator Ben Cardin (D-Md.)
Restaurant Revitalization Fund Replenishment Act – See the current list of S.2091 co-sponsors
Sen. Roger Wicker (R-Miss.)
Senator Kyrsten Sinema (D-Arizona)
Restaurant Revitalization Fund Replenishment Act – See the current list of co-sponsors HR3807
Rep. Earl Blumenauer (D-Ore.)
Representative Brian Fitzpatrick (R-Pa.)
Additional information about the Restaurant Revitalization Fund:
See the impact of RRF on your condition
How does the FRR work?
The program provides eligible hospitality businesses 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 the funds are used for eligible purposes by March 11, 2023.
Eligible entities include restaurants, food stands, food trucks, food carts, caterers, bars, saloons, lounges, taverns and soft drink bars, bakeries (if sales on site to the public represent at least 33% of gross receipts), breweries, tasting rooms, drinking establishments (if on-site sales to the public represent at least 33% of gross receipts), breweries and/or microbreweries (if on-site sales to the public represent at least 33% of gross receipts)wineries, distilleries (if on-site sales to the public are at least 33% of gross receipts), inns (if on-site sales of food and beverages to the public are at least 33% of gross receipts) and facilities or premises licensed premises of an alcoholic beverage producer where the public can sample, sample or purchase products.
- Calculation 1 – for applicants active before January 1, 2019: 2019 gross receipts minus 2020 gross receipts minus PPP loan amounts
- Calculation 2 – for applicants who started operations partially up to 2019: (average monthly gross receipts of 2019 x 12) minus gross receipts of 2020 minus PPP loan amounts
- Calculation 3 – for applicants who started their activities on or between January 1, 2020 and March 10, 2021 and applicants who have not yet opened but have incurred eligible expenses: Amount spent on eligible expenses between February 15, 2020 and March 11, 2021 less 2020 gross revenue less 2021 gross revenue (until March 11, 2021) less PPP loan amounts
- For entities that started their activities partially until 2019, you can choose (at your discretion) to use calculation 2 or calculation 3
The SBA can provide funding of up to $5 million per location, not to exceed $10 million in total for the applicant and all affiliated businesses. The minimum reward is $1,000.
For the purposes of this program, gross receipts do not include:
- Amounts received from Paycheck Protection Program (PPP) loans (first draw or second draw)
- Amounts received from Economic Injury Disaster Loans (EIDL)
- Advances on EIDL (EIDL Advance and Targeted EIDL Advance)
- State and local grants (through the CARES Act or otherwise)
- SBA Section 1112 Payments
Funds can be used for specific expenses, including:
- Company personnel costs (including sick leave)
- Payments on any commercial mortgage obligation
- Business rent payments (note: this does not include prepayment of rent)
- Company debt service (both principal and interest; note: this does not include any prepayment of principal or interest)
- Corporate utility payments
- Business maintenance expenses
- Construction of outdoor benches
- Professional supplies (including protective equipment and cleaning products)
- Professional food and beverage expenses (including raw materials)
- Supplier costs covered
- Business operating expenses
Effective May 24, 2021, the SBA closed applications for the Restaurant Revitalization Fund.