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Restaurant Revitalization Fund Q&A

April 28, 2021

SBA Restaurant Revitalization Fund Webinar Q&A

How long will I have to wait to find out if my application is being funded? 

Applications submitted will be turned around in 14 days if done through POS or SBA online application.

Can we apply on day 1, minute 1 when the application portal opens, even if we aren't a woman, veteran or minority owned businesses?


I am female and own 100% of my business as of 2020. The 10 years Prior to that I had a 50% partner who was male. We have not done our 2020 taxes yet, so how do I document on the RRF application that I am a 100% female-owned operator, since my 2019 tax return does not reflect that?

You can self certify that you are >51% women owned. You must not certify to false or inaccurate information.

Our company ownership is 50% veteran and 50% woman-owned. Should we consider ourselves Veteran/Woman owned Entity? 

Yes, as long as they are not the same person, you can add your 50% veteran owned to your 50% veteran owned and have over 51% owned by people in the priority groups.

What if they are husband and wife?

Priority entities must be 51% owned and operated by a priority group.

Can locally owned franchises apply?

Yes, franchisees can join if they are otherwise eligible.

What EXACTLY does "self-certify" mean? Is it an honor system, or is documentation required?

Self-certify means an entity has understood the eligibility criteria and attests to its information. There is and will be a lot of oversight on this program, and we strongly recommend a diligent look at this criteria.

Will the program get replenished if demand exceeds the available funding?

That will be up to Congress.

We had a soft opening 10/24/2019 and then were only open for 5 days at the end of October 2019. Do we count this as a full month or just use numbers for the full month of November 2019 and December 2019?

Take the average month of gross receipts for 2019 and multiply by 12, that is your calculation.

How does the SBA define gross receipts ? For example, if I had $10k in sales in January and I had $5k in expenses. Would my gross receipts therefore be $5k?

Gross Receipts:

Can funds be used to repay restaurant investors?

Eligible expenses:

What if the business was not opened until 2020?

Pages 6-8 are worksheets to calculate the WHEN and HOW MUCH:

The ownership for the applicant is anyone with 20% and greater. But the affiliate is anything that you own 50% or more. Is that correct?


We opened in March of 2020 (3 days prior to the Covid "shutdown"). Are we eligible?


Do business auto leases or monthly auto financing payments qualify under eligible expenses?

Any idea how gross receipts will be treated? Will it be just gross sales or will it be gross sales + tips + sales tax?

We bought an existing restaurant on June 1, 2020 and renovated and started making sales on Aug 1, 2020. Am I eligible?


How do you prove the ethnicity or sex of the owners?

Self-certification with extremely thorough oversight

If we have more than 20 locations from what date?

March 13, 2020

If an SBA PPP Loan was repaid after May 18, 2020, but prior to the RFF grant application, why does it still need to be deducted from the grant amount?

All PPP loans received by an entity are deducted from awards

Are businesses that opened in 2020 eligible for the grant? Since not having 2019 numbers makes it show an increase in sales, even if it's been challenging operating during the pandemic?

Businesses that opened in 2020 are eligible, and have a different calculation which we will walk through. Also included in our program guide linked:

Can I submit receipts for expenses I previously paid, or is it all forward looking?

You can go back to eligible expenses to Feb. 15, 2020

I have a restaurant that has been in renovation since the end of 2020, and will open this year. Can you tell me what expense is eligible?

See page 8

I am a caterer do we need to prove 33% of our sales on site in 2019? We cater most of our events off site at catering venues.


Do we have to apply from the SBA website?

NO, you can also apply by phone and via Restaurant Business Partners - expected to be Square, Toast, Aloha, and other partners.

What defines an affiliated business?

Affiliated Business: An Affiliated Business or affiliate is a business in which an eligible entity has an equity interest or right to profit distributions of not less than 50 percent, or in which an eligible entity has the contractual authority to control the direction of the business, provided that such affiliation shall be determined as of any arrangements or agreements in existence as of March 13, 2020.

I just learned that women-owned restaurants will get a priority. My wife and I each own 50% of our restaurant. Will it be okay if I make my wife a 51% owner today or tomorrow in order to secure the priority? Will this (making my wife a 51% ownership) needed to be certified by the SBA?

No entity should change their management structure before applying for a grant - this could trigger ineligibility. Learn more about priority groups here:

Form 4506-T. Do we enter information based on restaurant tax information or personal tax return information?

Restaurant Tax Information

Are gross receipts included sales and meal tax?

Gross receipts: Gross receipts generally are all revenue in whatever form received or accrued (in accordance with the entity’s accounting method, i.e., accrual or cash) from whatever source, including from the sales of products or services, interest, dividends, rents, royalties, fees, or commissions, reduced by returns and allowances but excluding net capital gains and losses. These terms carry the definitions used and reported on IRS tax return forms.

Is there a $100,000 annual cap on employee compensation?


What criteria allows applicants to submit prior to others?

In the owner info box on the sample application, it asks for a tax EIN, SSN or TIN. Is this supposed to be the Owners Social Security Number or company EIN or is either acceptable? 

EIN or what was used for PPP

Are you eligible if your 2020 income exceeded your 2019 income? In other words you did not operate at a loss in 2020 despite the pandemic?

If your 2020 gross receipts exceeded your 2019 income, you will not receive funding.

Does the payroll cost under eligible expense include employer taxes paid?

Yes! Payroll includes "Payment of state and local taxes assessed on compensation of employees," see page 19 of the guide:

Looks like EIDL is not being deducted from the eligible grant amount?


Do our grants need to be subtracted from the funds we can receive?

State/local grants ARE NOT INCLUDED within 2020 gross receipts, nor explicitly deducted from grant funds

The RRFG seems to be based upon tax filing status and the associated TIN. However, I applied for 1st PPP Loans under 2 different TINs. How do I reflect both PPP Loans on the application? The sample application only permits room for 1 PPP Loan.

There will be room to list all relevant ppp loan identifiers.

Will the EIDL loan be deducted along with the PPP loan?


Will the IRS Form 4506-T be included in the application, or will it have to be uploaded?

Included in the application.

We applied 1st PPP under our management level (not location level) and applied 2nd PPP under each location level. Do we need to enter both PPP information when we are applying the RRF on location level?

See page 13:

Will the RRF application ask for our NAICS Code?

Not in draft form:

Where do we get the forms about the 33% of sales on site? Or how do you access that information?

Federal Tax & Trade Bureau OR state records

Will we upload our tax returns or just authorize access using the 4506-T


Is this program open to craft brewery facilities and distilleries?


Can use of funds from PPP and RRF overlap?

You can use both programs during the same time period on eligible expenses

We bought over a business and started generating sales on January 7th, 2019. Which calculation method should we follow?

Probably the "Open in 2019" calculation to find your average month and multiply by 12.

Is there talk of some sort of compensation for the decrease in sales for 2021? My numbers are still down and actually got worse once the other restaurants around me opened back up.

Not yet, no. Have you looked at the ERTC? You can get payroll support if your sales are down when compared to 2019. We have a webinar next week to discuss more.

If you received a PPP loan and a portion of the loan was not forgiven can you reapply for the difference that was deducted from RRF?

No, it is still deducted.

What is the maximum amount of the grants?

SBA may provide funding of up to $5,000,000 per location (not to exceed $10,000,000 total for the Applicant and any affiliated businesses) for Applicants who meet eligibility requirements. The minimum funding amount will be $1,000; therefore, applications requesting less than $1,000 (net required reductions) in funding will not be accepted or approved.

My 2020 taxes are not finalized and all of my gross sales are not entered into the POS system. Catering is an example of that. How is that handled regarding documentation?

Guidance is here:

When does the RRF application window end? Do you believe all the funds will be used?


What does the funding timeline look like at this time? When could we expect funding to be released?


So to be eligible for a grant, my gross sales must be less than my expenses?

Generally, yes.

Do Caterers have to prove 33% on site sales? We sell most off site at venues that were shut down.


Who is considered socially and economically disadvantaged?

How does the set aside for businesses with less than $1.5 million in sales work? Does it increase chances of funding?

The design is to secure/reserve funding to ensure it doesn't go too quick, yes.

If you are Afghan/American aka South Asian American, can you certify as minority or priority:

I am from Argentina, am I considered Hispanic American?

This is what we know:

Did I hear right, tips are included in gross receipts?

Tips are NOT included in the gross receipts for 2019 or 2020

Do you have to complete the application all at once, or can you save and come back?

You can save and come back.