Perhaps the biggest help restaurants and food trucks in San Juan County can expect from the American Rescue Plan will come from the Restaurant Revitalization Fund (RRF). This is a brand new program administered by the Small Business Administration. For most of the food servers, restaurants, food trucks and even food carts, in our county it amounts to a grant fund of $500 million that will be available with a pretty simple application process. There is a link to the sample application in the “here’s what you need…” section below.
The application process will give a head start to businesses with majority (51% or more) ownership stake by Women, Veterans and Socially and Economically disadvantaged. This is a term that has come recently into the vocabulary and is defined as follows:
Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities
Economically disadvantaged individuals are those whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area who are not socially disadvantaged.
Who Can Apply?
Food Stands, food trucks, food carts
Bars, saloons, lounges, taverns
Snack and nonalcoholic beverage bars
Bakeries (onsite sales to the public comprise at least 33% of gross receipts)
Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts)
Wineries and distilleries (onsite sales to the public comprise 33% of gross receipts)
Inns (onsite sales of food and beverage to the public comprise at least 33% of gross receipts)
Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample or purchase products.
Release date has not been announced but it is coming up soon. The SBA will accept applications from all eligible applicants, but only process and fund priority group applications for the first 21 days. After that it’s anyone and everyone until the funds are exhausted. On day 22 the SBA will accept applications from all eligible applicants and process applications in the order in which they are approved. So it would be wise to have all your documents handy once the portal opens up.
Here is what you will need to fill in the online application.
16-Page Application: SBA Form 3172 (click link to see sample application)
Verification for Tax Information: IRS Form 4506-T
Gross Receipts Documentation for 2019 & 2020: Any of the following documents demonstrating gross receipts and, if applicable, eligible expenses
Business Tax returns (IRS Form 1120 or IRS 1120-S)
IRS Forms 1040 Schedule C; IRS Forms 1040 Schedule F
For a partnership: partnership’s IRS Form 1065 (including K-1’s)
Externally or internally prepared financial statements such as Income Statements or Profit and Loss Statements
Point of sale reports(s), including IRS Form 1099-K
For applicants that are a brewpub, tasting room, taproom, brewery, winery, distillery, or bakery”
Documents evidencing that onsite sales to the public comprise at least 33% of gross receipts for 2019, which may include Tax and Trade Bureau (TTB( Forms 5130.9 or TTB.
For businesses who opened in 2020, the applicants original business model should have contemplated at least 33% of gross receipts for 2019,which may include Tax and Trade Bureau (TTB) Forms 5130.9 or TTB.
For businesses who opened in 2020 the applicant's original business model should have at least 33% of gross receipts in onsite sale to the public.
The list of things you can spend this grant on is extensive and includes everything from sick leave for employees to construction of outdoor seating.
Here is the list:
Business payroll costs (including sick leave)
Payments on any business mortgage obligation
Business rent payments (this does not include prepayment of rent)
Business debt service: both principal and interest (this does not include any prepayment of principal or interest)
Business utility payments
Business maintenance expenses
Construction of outdoor seating
Business supplies, including protective equipment and cleaning materials
Business food and beverage expenses: including raw materials
Covered supplier costs
Business operating expenses
Meghan McFall at USU Small Business Development Center in Blanding is planning a webinar next week to address any questions San Juan County businesses may have of the application proces. Watch our news room for information on that and a link to a downloadable PDF version of the actual application form for the RRF.