More than 186,000 restaurants, bars, and other food and beverage businesses applied for assistance from the $28.6 billion Restaurant Revitalization Fund (RRF) during the first two days after the program’s application window opened May 3.
The U.S. Small Business Administration (SBA), which operates the RRF, reported that it received:
- 186,200 applications from restaurants, bars, and other eligible businesses in all 50 states, Washington, D.C., and five U.S. territories.
- 97,600 applications from restaurants, bars, and other eligible businesses owned and controlled by women (46,400), veterans (4,200), socially and economically disadvantaged individuals (30,800), or some combination of the three (16,200).
- 61,700 applications from businesses with less than $500,000 in annual pre-pandemic revenue.
The RRF provides restaurants and other eligible businesses with grants equal to their pandemic-related revenue loss, up to $10 million per business and no more than $5 million per physical location. The funds can be used for eligible expenses, such as payroll and rent.
All eligible food and beverage providers are allowed to apply to the RRF, but for the first 21 days the SBA will prioritize reviewing applications from small businesses owned by women, veterans, and socially and economically disadvantaged individuals.
After the first 21 days, the SBA will fund all eligible applications on a first-come, first-serve basis. Approved applicants should expect an average of 14 days for processing, review, approval, and funds distribution, the SBA said.
Restaurants and other food and beverage providers have been among the hardest hit businesses during the COVID-19 pandemic.
Eligible entities for the RRF include:
- Food stands, food trucks, and food carts;
- 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.
AICPA members can access a detailed summary of the RRF.
AICPA experts discuss the latest on the PPP and other small business aid programs during a virtual town hall held every other week. The webcasts, which provide CPE credit, are free to AICPA members and $39 for nonmembers. Go to the AICPA Town Hall Series webpage for more information and to register. Recordings of Town Hall events are available to view for free on AICPA TV.
The AICPA’s Paycheck Protection Program Resources page houses resources and tools produced by the AICPA to help address the economic impact of the coronavirus.
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— Jeff Drew (Jeff.Drew@aicpa-cima.com) is a JofA senior editor.