RINA presented details about The Restaurant Revitalization Fund March 30 in a webinar. The panelists answered many questions asked by attendees, but they were unable to get through all of those submitted by participants.RINA is happy to respond below to questions asked which we were not able to answer during the webinar.
Would a management company (S-corp) that takes management fees from restaurants be eligible?
The law defines eligible entities as places where the public comes for the primary purpose of being served food or drink. Restaurants that the S-Corp manages are eligible for aid and can pay operational expenses from the grant money. However, management corporations that are not owners of eligible entities are not able to get money directly from the government.
Will we be notified of when we can apply for the RRF and will SBA be notifying us?
The government has not announced any plan to notify eligible businesses that applications are open. However, RINA, news organizations, restaurant associations, financial institutions, and others will be trumpeting the opening of applications when it happens. RINA will post the information on its website and also will send out a short alert to people to registered for the Early Bird webinar.
Is there any restrictions on inventory that RRF funds can be used for?
The law is permissive allowing, “Food and beverage expenses that are within the scope of the normal business practice of the eligible entity before the covered period.” The only question the government might have is if the expense paid for by the RRF was “normal”.
On the retroactive expenses question for the RRF, Richard said that "unpaid" expenses relating to 2020 could be used under the grant. Does the law say that or are you interpreting?
The law specifies that the fund covers losses incurred during the period beginning February 15, 2020 through at least December 31, 2021.
Does an EIDL loan or a bank line of credit impact the “necessity” of an analysis of necessity?
The RRF application will require that you make a “good faith certification that the uncertainty of current economic conditions makes necessary the grant request to support the ongoing operations of the eligible entity.” No specific analysis is mentioned.