If you own a restaurant or bar, you need to be aware of the Restaurant Revitalization Fund Grant Program. These grants can reach 7-figures depending on your circumstances. And, you're going to need to be ready to act quickly.
If you own a restaurant or bar, you need to be aware of the Restaurant Revitalization Fund Grant Program. These grants can reach 7-figures depending on your circumstances. And, you're going to need to be ready to act quickly.
This is taxes made simple. The only podcast that gives you the tax information you need. Without going too far into the weeds this week is for restaurants, bars, food stands, food trucks, and really just about any business that is in the business of selling you something that you can eat or drink. If you own one of these establishments, and haven't heard of the restaurant revitalization fund grant program, I need a few minutes of your attention, which I would guess I got by using the word grant that's right. This program is not alone, but a straight grant to your business from the SBA. The amount of the grant generally is the decrease in revenue of the business in 2020 as compared to 2019. So if you did a million dollars in 2019, and that did 400 K in 2020, you'd be looking at a potential grant of $600,000. Anyone who would be getting this grant would be familiar with the paycheck protection program. So let's talk about the major differences from the triple P for starters, as I just mentioned, it's not alone, so there's no need to apply for loan forgiveness. And there's no requirement to spend a certain portion of the grant on payroll and the non payroll costs that are eligible are much more broad than triple P last, the covered period or in layman's terms, the period of time that you can spend the funds in an eligible fashion is February 15th, 2020 to December 31st, 2021, which is clearly a much longer time than the covered period for the triple P loan. But what are the deal breakers here? Well, if you currently have received or have a pending application for a shuttered venue operator grant, you're not eligible. If you're owned by a state or local government or a publicly traded corporation that ain't going to work either. If the restaurant has more than 20 locations as of March 13th, 20, 20, sorry, but you're too big. All businesses. And this is similar to the triple P need to certify that the uncertainty of current economic conditions make the grant requests necessary to support the ongoing operations of the entity. And in terms of funding and priorities, there is a total of $28.6 billion allocated to the program. 5 billion is specifically set aside for businesses with revenues of $500,000 or less. And the remaining $23.6 billion is for businesses above 500 K, but regardless of revenue figures, women owned and veteran owned businesses as well as socially and economically disadvantaged. Small businesses are going to get priority over everyone else. Grants are capped at $10 million per entity and $5 million per location, and must be reduced by the amount of triple P and E I D L loan amounts previous actually received. So let me be clear earlier that the only thing that's going to keep this program funded for more than just a day is the fact that there will be enough businesses excluded that applied for the shuttered venue operator grant, and that the bigger restaurant chains are going to be excluded. Nonetheless, the money is going to go fast on this one. So you're going to have to stay on top of this and get your ducks in a row. If you want to get a piece of the proverbial pie, which by the way, wouldn't be a terrible name for a pie shop who would also be eligible for this grant. The SBA will be making applications available in the coming weeks. So make sure your financials are up-to-date and any other documentation that would help you prove eligibility is handy as well. And to put a bow on it. I'm absolutely depending on my favorite restaurants and bars, to be smart about this, because anyone who knows me knows that I like to eat and drink a bit more than the next guy. Anyway, that's it for now? Thanks for tuning into TMS or taxes made simple. If you're not into the whole brevity thing, because there's TMI and then there's TMS. See you next week.