The American Rescue Plan Act established the Restaurant Revitalization Fund (RRF) to provide funding to help restaurants and other eligible businesses keep their doors open. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than .
How can you spend the RRF grant?
Funds from the RRF grant are designated to be spent on any expenses that the SBA administrator “determines to be essential to maintaining the eligible entity.” This includes: Payroll costs (including paid sick leave) The principal or interest on a Mortgage. Rent or lease payments.Jul 6, 2021
Is the SBA RRF grant taxable?
Funds received from the RRF are not treated as taxable income, and expenditures paid with these funds are tax deductible.
Can I sell my business if I have an RRF grant?
You may sell your business after you receive RRF funds; however, before the sale takes place: The seller must demonstrate to SBA that all RRF funds have been used for eligible purposes prior to the sale; or. The seller may remit to the Treasury any RRF funds that have not been used for eligible purposes.
Does a grant count as taxable income?
In most cases, grants and bursaries are considered taxable income.
How is RRF grant calculated?
The grant amount is calculated by taking your eligible expenses and subtracting the gross receipts. This means that for businesses that opened after 2019 to be eligible for an RRF grant, they must have operated at a loss (negative net profit).
Do you have to pay back RRF grant?
An eligible restaurant business may receive a tax-free federal grant equal to the amount of its COVID 19 pandemic-related revenue loss. Unlike the PPP, the RRF is a grant, which means you do not need to pay it back.
Whats going on with the Restaurant Revitalization Fund?
The Small Business Administration's Restaurant Revitalization Fund was supposed to be a lifeline for pandemic-ravaged restaurants. But new reports indicate that, in fact, more than 250,000 restaurants that applied for relief did not receive it, and now the fund is shutting down because it's out of money.Jul 2, 2021
When did the Restaurant Revitalization Fund close?
The U.S. Small Business Administration announced Thursday that it is closing the Restaurant Revitalization Fund portal on July 14.Jul 1, 2021