Restaurant Revitalization Fund: How to Report Your Expenditures
If your business had the good fortune to receive a tax-free grant from the Restaurant Revitalization Fund (RRF), you are probably aware that the funds must be used for eligible expenses during the “covered period.” Generally, recipients must use the funds by March 11, 2023, for eligible expenses incurred from February 15, 2020, through March 11, 2023 (or, if sooner, when the business permanently closes). Any unused funds must be returned to the U.S. Department of the Treasury.
Related Read: $28.6 Billion Federal Restaurant Relief
To confirm that the grant money is being spent appropriately, recipients must file annual Use of Funds reports with the U.S. Small Business Administration (SBA) until the funds have been depleted. You must submit the report through the SBA’s Restaurant Revitalization Award Portal at https://restaurants.sba.gov. If you did not spend all of your funds by the end of 2021, the next report is due December 31, 2022.
On the report, you will need to certify that the grant proceeds have been used for eligible expenses. You will also need to report how much of your award has been used for each of the following eligible use categories:
- Payroll costs, including sick leave and certain other health benefits, but excluding qualified wages used to claim the employee retention credit.
- Mortgage principal and interest payments (other than prepayments).
- Rent (other than prepayments).
- Business debt service (both principal and interest payments, other than prepayments).
- Maintenance expenses, including maintenance on walls, floors, deck surfaces, furniture, fixtures and equipment.
- Construction of outdoor seating.
- Supplies, including protective equipment and cleaning materials.
- Food and beverage expenses, including raw materials for beer, wine or spirits.
- Covered supplier costs, defined as expenditures for goods that:
- Are essential to your operations at the time the expenditure is made; and
- Are purchased pursuant to: (1) A contract, order or purchase order in effect at any time before the receipt of RRF money, or (2) With respect to perishable goods, a contract, order or purchase order in effect before or at any time during the covered period.
- Operating expenses, defined as business expenses incurred through normal business operations that are necessary and mandatory for the business, such as rent, equipment, supplies, inventory, accounting, training, legal, marketing, insurance, licenses, and fees.
Keep in mind that the SBA reserves the right to request supplemental documentation to validate your use of the funds. So be sure to retain all records related to your eligible expenses.
For assistance in tracking and documenting RRF expenditures or completing the Use of Funds report, please contact Jim Pellino at [email protected]. Visit ORBA.com to learn more about our Restaurant Group.