New York City Restaurant Revitalization Funds (RRF) in New York City, New York

New York City, New York Restaurant Revitalization Funds SBA RFF

In New York, over 9,775 restaurants have received approval for $3,667,054,114 in loans from the Restaurant Revitalization Fund (RRF), including those restaurants in New York City.

The U.S. Small Business Administration (SBA) previously awarded funding through the New York City, New York Restaurant Revitalization Program to New York City restaurants, bars, and other similar places of business that serve food or drink in the City of New York City, NY.

The purpose of that restaurant SBA funding was to provide support to restaurant related entities that suffered revenue losses related to the COVID-19 pandemic. The program provided emergency assistance for eligible restaurants, bars, and other qualifying businesses impacted by COVID-19 in New York City, NY.

New York SBA Update: All New York City, NY RFF funds have officially run out in 2021. However there is new hope. In April 2022, legislation was passed to fund $42 billion into the Restaurant Revitalization Fund (RRF) for the 177,000 restaurants that were approved for, but didn’t receive RRF grants. The Senate still needs to approve this bill, and then all eligible restaurants in New York City, New York can access new RFF funds.

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New York City, New York Restaurant Revitalization Funds (RRF)

The American Rescue Plan Act (ARPA) established the RRF to provide funding to help restaurants and other eligible businesses in New York City, NY keep their doors open.

New York City, NY Restaurant Revitalization program will provide restaurants with funding equal to their pandemic-related revenue loss of up to $10 million per business and no more than $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.

The $28.6 billion Restaurant Revitalization Fund provided desperately needed relief to more than 100,000 restaurants and other food and beverage businesses across the nation with significant funding going to our hardest-hit, underserved businesses,” said SBA Administrator Isabel Guzman. “Restaurants are at the center of our neighborhoods and propel economic activity on Main Streets. As among the first to close in this pandemic and likely the last to reopen, many are still struggling to survive. The SBA will continue to work hard to ensure they get the resources they need to recover, rebuild and be resilient.

ARPA appropriated $28.6 billion for RRF, authorizing SBA to award funds.

As of June 30, 2021, the RRF program received more than 278,000 submitted eligible applications representing over $72.2 billion in requested funds, and approximately 101,000 applicants have been approved to restaurants, bars, and other restaurant-type businesses.

Who Can Apply for the New York City, New York Restaurant Revitalization Fund?

Businesses located in New York City, NY that suffered revenue loss during the COVID-19 pandemic are eligible to apply, as well as businesses ineligible for traditional SBA assistance in New York.

Eligible entities who have experienced pandemic-related revenue loss include:

• New York City Restaurants
• Food stands, food trucks, food carts in New York City
• New York City Caterers
• New York City Bars, saloons, lounges, taverns
• Snack and nonalcoholic beverage bars in New York City
• New York City Bakeries (onsite sales to the public comprise at least 33% of gross receipts)
• New York City Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts)
• New York City Breweries or microbreweries (onsite sales to the public comprise at least 33% of gross receipts)
• Wineries and distilleries in New York City (onsite sales to the public comprise at least 33% of gross receipts)
• New York City 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 a sample or purchase products
• Other similar places of business in which the public or patrons assemble for the primary purpose of being served food or drink in the City of New York City

Who Is Eligible for the New York City Restaurant Revitalization Fund in NY?

Eligible New York City Applicants must be one of the following forms of organization:

• C-Corporations located in New York City
• S-Corporations located in New York City
• Partnerships
• Limited Liability Companies
• Sole Proprietors
• Self-Employed Individuals
• Independent Contractors
• Tribal Businesses
• LLC taxed as S-Corporations or Sole Proprietors

What is the New York City, NY Restaurant Revitalization Fund?

Any New York City business concerned with operating as a franchise and meeting all other program requirements is eligible. The franchise must be listed on the SBA Franchise Directory. In the application portal, Applicants will be able to look up their entity on the SBA Franchise Directory.

For brands not listed on the New York City Directory (including brands that have previously been denied listing on the Directory because of affiliation issues), the franchisor must submit the Franchise Disclosure Document (or other agreement) and all other documents a franchisee is required to sign to [email protected] for review of SBA’s other eligibility criteria (e.g., 13 CFR § 120.110).

What Applicants can Apply for the New York City Restaurant Revitalization Fund in New York?

Applicants in New York City that are operating under an approved plan of reorganization, under either a Chapter 11, Chapter 12, or Chapter 13 bankruptcy and meet all program requirements are eligible for funding.

An Applicant in New York City is not eligible if it has:

• Permanently closed
• Filed a Chapter 7 liquidation bankruptcy
• Filed for either a Chapter 7 or Chapter 11, 12, and 13 bankruptcy but is not under an approved plan of reorganization.

Permanently closed does not include businesses that temporarily closed their doors due to state or local restrictions or other pandemic causes but are still in operation or have reopened.

Are New York City, NY Restaurant Locations Eligible for the RRF?

You must count all New York locations owned or operated under your Applicant business’s EIN and your Applicant business’s affiliates, even those that are not eligible for RRF.

Counting Locations:

• Any New York City entity with its affiliates owns or operates more than 20 locations, regardless of whether the businesses operate under different names or are different types of business, is not eligible for RRF.
• For example, if your business and its affiliates own 16 dry cleaners and 5 restaurants, your business has 21 locations, which means your business is not eligible for RRF.
• Each place where the Applicant or affiliates conduct sales from a permanent structure is counted as a location. If the Applicant or affiliates conduct sales from multiple permanent locations, each address is a separate location. For a caterer or a single business with multiple food stands, trucks, or carts, the physical location is where the business is headquartered (i.e., a business with one permanent structure and five food trucks will have one location; a caterer will have one location).

Corporate Groups:

• Locations owned or operated by a single corporate group will count toward the 20 location maximum limit for eligibility and the $10 million aggregate limit on RRF funding.
• Businesses that are part of a single corporate group that in the aggregate own or operate more than 20 locations are not eligible for RRF funds.
• When individuals or entities directly or indirectly own or control multiple locations, all locations must be counted toward the 20-location maximum limit for eligibility and the $10 million aggregate limit on RRF funding.
• This includes any locations that operate under separate tax identification numbers or names and applies whether or not ownership or control is through an individual, management, or holding companies or other entities.
• For example, An individual owns or controls 16 restaurants, each with separate tax identification numbers (e.g. EIN/SSN/ITIN) and 5 gas stations. Since all of these businesses (restaurants and gas stations) must be counted, none of the restaurants is eligible for RRF funds.

New York City Affiliates:

When You are Filling Out Your RRF Application, You Will Be Asked If The Applicant Has Affiliates.

• You must select “yes,” if the RRF eligible applicant entity has an equity interest or right to profit distributions of 50% or greater of one (or more) other business entity; and/or
• You must select “yes,” if any owner of 20% or greater equity interest of the RRF eligible applicant entity has an equity interest or right to profit distributions of 50% or greater of one (or more) other business entity; and/or
• You must select “yes,” if the Applicant business is a holding company or management company that owns or manages a business other than the Applicant business, or if the Applicant business is held or managed by a company that owns or manages other businesses you must count these entities as separate affiliates and locations.

Who are New York City Small Businesses That May Not Apply for Restaurant Revitalization Fund?

Entities are ineligible if any of the following apply:

The Entity:

• Is a State or local government-operated business;
• As of March 13, 2020, owns or operates (together with any affiliated business) more than 20 locations, regardless of whether those locations do business under the same or different names or are indifferent industries;
• Has a pending application for or has received a Shuttered Venue Operators Grant;
• Is a Publicly-Traded Company;
• Is permanently closed;
• It is a Nonprofit organization;
• Is not eligible for funding of at least $1,000.

What SBA EIDL Loan Amount Can You Get from the RFF for Each Restaurant Location in New York City?

SBA may provide funding of up to $5,000,000 per location in New York City, NY (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. For example, if Applicant X has a reduction in revenue of $2,000 but has a PPP loan for $1,500, the Applicant’s application will not be approved for processing and funding because the net funding calculation is less than $1,000.

Gross Receipts

For the New York City, NY Restaurant Revitalization Fund program, gross receipts do not include:

• Amounts received from Paycheck Protection Program (PPP) loans (First Draw or Second Draw)
• Amounts received from Economic Injury Disaster Loans (EIDL)
• Advances on EIDL (EIDL Advance and Targeted EIDL Advance)
• State and local grants (via CARES Act or otherwise)
• SBA Section 1112 payments

What Can I Exclude From 2020 Gross Receipts?

Do not include any of the following in 2020 gross receipts:

• Paycheck Protection Program (PPP) loan
– First Draw PPP Loan or Second Draw PPP Loan received in 2020 and/or 2021
• SBA Section 1112 payments;
• SBA Economic Injury Disaster Loan (EIDL) loan, EIDL Advance, Targeted EIDL Advance or any other grant funds received via CARES Act;
• Any state and local business grants;
• Randolph-Sheppard Act Financial Relief and Restoration Payments (FRRP) Appropriation

What are the Eligible Uses of the RRF Funds for New York City Restaurants?

New York City, NY Restaurant Revitalization Funds may be used for specific expenses, including:

• 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 have 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

All New York City, NY Applicants have until March 11, 2023, to use award funds. No later than December 31, 2021, all Applicants are required to report through the application portal how much of their award has been used against each eligible use category.

If the Applicant fully expends their funds before December 31, 2021, they will be asked to certify that proceeds have been used on eligible expenses in the application portal. All Applicants that do not fully expend award funds before December 31, 2021, will be required to complete annual reporting submissions until they fully expend the award funding or the period of performance expires.

SBA reserves the right to request supplemental documentation needed to validate the certification.

What to Expect After You Have Applied for New York City, NY Restaurant Revitalization Fund?

As outlined by Congress, SBA will review applications from priority applications groups first. Applicants who have submitted non-priority applications will remain in “Review” status while priority applications are processed during the first 21 days. We do not anticipate communicating with applicants in “Review” status during this period.

Following successful application submission, all applications will enter “IRS verification” status. This process may take up to seven days and allows the SBA to validate your application submission.

How to Apply for New York City, NY Restaurant Revitalization Fund?

New York SBA Update: All New York City, NY RFF funds have officially run out in 2021. However there is new hope. In April 2022, legislation was passed to fund $42 billion into the Restaurant Revitalization Fund (RRF) for the 177,000 restaurants that were approved for, but didn’t receive RRF grants. The Senate still needs to approve this bill, and then all eligible restaurants in New York City, New York can access new RFF funds.

You can apply through SBA-recognized Point of Sale (POS) vendors or directly via SBA in the online application portal. Participating POS providers include Square, Toast, Clover, NCR Corporation (Aloha), and Oracle. If you are working with Square or Toast, you do not need to register beforehand on the application portal.

Registration with SAM.gov is not required. DUNS or CAGE identifiers are also not required.

If you would like to prepare your application, view the SBA Form 3172 sample application. You will be able to complete this form online. Please do not submit RRF forms to SBA at this time.

Additional documentation required:

• Verification for Tax Information. IRS Form 4506-T, completed and signed by Applicant. Completion of this form digitally on the SBA platform will satisfy this requirement.
• Gross Receipts Documentation. 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-1s).
• Bank statements.
• Externally or internally prepared financial statements such as Income Statements or Profit and Loss Statements.
• Point of sale report(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 33.00% of gross receipts for 2019, which may include Tax and Trade Bureau (TTB) Forms 5130.9 or TTB.
• For businesses that opened in 2020, the Applicant’s original business model should have contemplated at least 33.00% of gross receipts in onsite sales to the public. 

For Applicants That Operate as an Inn:

• Documents evidencing that onsite food and beverage sales to the public comprise at least 33.00% of gross receipts for 2019.
• For businesses that opened in 2020, the Applicant’s original business model should have contemplated at least 33.00% of gross receipts in onsite sales to the public.

What Documents Do I Need to Apply for the New York City, NY Restaurant Revitalization Fund?

Application: 

SBA Form 3172, completed, initialed and signed. Completion of this form digitally on the SBA Grant Platform will satisfy this requirement.

Verification for Tax Information:

IRS Form 4506-T, completed and signed by Applicant. Completion of this form digitally on the SBA Grant Platform will satisfy this requirement.

Gross Receipts Documentation:

Any of the following documents demonstrating gross receipts and, if applicable, eligible expenses.

– Business tax returns (IRS Form 1120 or IRS Form 1120-S);
– IRS Form1040 Schedule C;
– IRS Form 1040 Schedule F;
– For a partnership: partnership’s IRS Form 1065 (including K-1s);
– Bank statements;
– Externally or internally prepared financial statements such as Income Statements or Profit and Loss Statements;
– Point of sale report(s), including IRS Form 1099-K

Required:

– Application – SBA Form 3172
– Tax Verification – IRS Form 4506-T
– 2019 Gross Receipts – Tax Returns
– Most recent 3 months of bank statements
– 2020 Gross Receipts (at least 1)

Preferred:

– Federal Tax Returns filed
– Point of Sale report
– Accepted (may delay review past 14 days):

Externally or internally prepared financial statements such as Income Statements or Profit and Loss Statements, signed, dated & certified as to accuracy by Applicant.

In addition to the above documents, 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 forms, state or local forms filed, or internally created reports from inventory management, sales reporting, or accounting software. 

For businesses that opened in 2020, the Applicant’s original business model should have contemplated at least 33% of gross receipts in onsite sales to the public.

For Applicants that are an Inn, documents evidencing that onsite food and beverage sales to the public comprise at least 33% of gross receipts for 2019. For businesses that opened in 2020, the Applicant’s original business model should have contemplated at least 33% of gross receipts in onsite food and beverage sales to the public.

New York City, NY Restaurant Revitalization Fund Set-Asides

1. $5 billion is set aside for applicants with 2019 gross receipts of not more than $500,000.
2. An additional $4 billion is set aside for applicants with 2019 gross receipts from $500,001 to $1,500,000.
3. An additional $500 million is set aside for applicants with 2019 gross receipts of not more than $50,000

What to Expect After You Have Applied for New York City, NY Restaurant Revitalization Funds?

As outlined by Congress, SBA will review applications from priority applications groups first. Applicants who have submitted non-priority applications will remain in “Review” status while priority applications are processed during the first 21 days. We do not anticipate communicating with applicants in “Review” status during this period.

Following successful application submission, all applications will enter “IRS verification” status. This process may take up to seven days and allows the SBA to validate your application submission.

What are the Best Practices for Getting Approval for the RRF for New York Restaurants in New York City?

1. Provide complete documentation – Applications with incomplete documentation will be rejected. The review process will restart when complete documentation is provided. Delays could jeopardize the Applicant receiving the award.

2. Leverage your resources – While not required, the use of CPAs and other accounting professionals may help ensure a complete and well-documented application.

3. Application corrections – SBA is not able to make corrections on behalf of Applicants. Applicants who require corrections will need to contact the call center hotline at (844) 279-8898.

4. Applicants who still intend to apply for PPP – RRF applicants are advised to complete their PPP application in advance of the RRF application.

My New York City, New York Restaurant Revitalization Funds Application was Denied, Now What?

If you’re a business owner in New York City, NY who has been denied financial aid from the SBA, you should know that it is possible to be approved after reapplication. However, if your SBA application was rejected due to not meeting eligibility requirements or because your paperwork wasn’t complete, make sure to improve the way you present yourself before applying again.

The first thing that you should check is why your loan application was denied. Then, make sure to thoroughly read over the rejection letter they sent you to help you better prepare next time around.

You can reapply for SBA loans; just make sure to fill out the application as accurately and thoroughly as possible.

For more information, visit the official SBA RRF page.

Conclusion and Summary for Restaurants in New York City, New York

New York Restaurant Revitalization Fund (RRF) is a fund that was created to help small business restaurant owners in New York City, NY. Applicants should provide complete documentation when applying, including leveraging resources such as accountants or sba loan advisors.

This RRF fund it’s a great resource for any company looking to expand. Do you think your small business could benefit from the New York City, NY RRF? Did you already apply for one? Or, were you turned down for a PPP, EIDL, or other SBA loan in New York City, NY?

Share your thoughts in the comment section below.

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