Some of you have received RRF (Restaurant Revitalization Fund) money.
Consider yourself very lucky. Only about 39% of applications were able to be funded before the money ran out and the fund was closed. And there is a huge pent-up demand for restaurants that never filed an application. The likelihood of adequate new funding is not good.
For those who received funds:
- You can use the funds to pay for almost all operating type expenses including food and beverage costs and current note or debt payments as they come due.
- We suggest that you open a separate checking account for the RRF funds and simply write checks for operating expenses until the money runs out. You have until March 11, 2023 to exhaust all RRF funds.
- You must make a report to SBA each December 31 reporting how the funds were used.
Not all the rules have been issued but generally speaking:
- Do not use RRF to pay individuals earning over $100,000 per year.
- Do not use RRF to buy equipment that is a capital improvement expected to last over 1 year.
- You can use RRF to build an outdoor seating area.
- Paying off old debt is eligible if incurred after February 15, 2020.
- You cannot use RRF and ERTC on the same payroll.
- If you close or sell the business, any unused funds must be paid back.
