Update: Restaurant Revitalization Fund Grants | Wendel Rosen LLP

The Cafe Revitalization Fund (RRF) was made to deliver immediate relief to eating places and other foodservice venues afflicted by the COVID-19 pandemic.[1] As the Modest Small business Affiliation (SBA) has nevertheless to launch the RRF applications, we motivate restaurant proprietors to proceed checking the SBA website for news and updates on the RRF grants and the software process.

In the meantime, the National Restaurant Association (Association) has issued updated FAQs on the RRF Grant Program. The Association supplies the hottest details about how the RRF grant process may possibly operate, as well as new developments on eligibility.  The FAQs can assist you get ready for the RRF Application process, and we really encourage all cafe homeowners to overview them.

New Included Period?

The RRF coated time period might be prolonged by an extra 14 months, which would mean applicants that obtained an RRF grant could be provided till March 2023 to shell out the cash.

Eligibility?

In accordance to the Affiliation, eating places and other foodservice entities that have completely closed or those that are running less than personal bankruptcy protection (without an approved program of reorganization) will not be suitable for the RRF grant.

We know that bakeries, breweries, brewpubs, distilleries, taprooms, wineries and inns may implement for a RRF grant. In get to be eligible for the grant, individuals foodservice entities will have to demonstrate that at the very least a third of their revenues come from the sale of food stuff and drinks consumed onsite.

Necessary Paperwork?

Places to eat and other foodservice entities that are entitled to RRF grants ought to put together the subsequent paperwork:

• An application sort and the IRS Kind 4506-T, as well as gross receipts documentation.
• Applicants in procedure just before January 1, 2019 must provide gross receipts for 2019 and 2020
• Applicants in procedure by way of portion of 2019 have to provide gross receipts for 2019 and 2020
• Applicants that started functions on or in between January 1, 2020 and March 10, 2021 and applicants that have not however opened as of March 11, 2021, but have incurred qualified costs, should provide documentation of gross receipts and suitable expenses for the length of time in procedure.

The documents to clearly show gross receipts and qualified fees, contain:

• Business enterprise tax returns (IRS Form 1120 or IRS 1120-S)
• IRS Kinds 1040 Plan C IRS Forms 1040 Program F
• For a partnership: partnership’s IRS Type 1065 (like K-1s)
• Lender statements
• Monetary statements such as Income Statements or Gain and Loss Statements
• Position of sale report(s), which includes IRS Variety 1099-K

The Application Approach?

On March 30, 2021 the SBA clarified that, in purchase to streamline and simplify the application course of action, the RRF candidates will not be necessary to apply for a SAM (Process for Award Management) selection. The SBA stated that it ideas to award RRF grants in the buy in which programs are obtained.

We will carry on to watch and present updates on the RRF Grant Plan.

[1] You can discover our initially write-up on the RRF here.

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