Do you have to pay back the 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.
What expenses are eligible for RRF?
Business maintenance expenses, including maintenance on walls, floors, deck surfaces, furniture, fixtures, and equipment. Construction of outdoor seating. Business supplies, including protective equipment and cleaning materials. Business food and beverage expenses, including raw materials for beer, wine, or spirits.
Are RRF funds still available?
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 March 11, 2023.
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).
How do I spend my RRF funds?
Allowable Use Of RFF Funds 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.
Is the RRF taxable?
The Restaurant Revitalization Fund grants are exempt from federal income taxes. However, many California based restaurants and bars are not aware that RRF grants are currently subject to income taxes in California.
Who received RRF funds?
In total, 34% of the total grants were distributed to businesses owned by socioeconomically disadvantaged persons, almost 44% went to women-owned businesses and 5.7% were distributed to businesses owned by veterans.
Are RRF funds taxable?
Is SBA RRF taxable?
Recipients of RRF funds are not required to repay the funding if the funds are used for eligible expenses no later than March 11, 2023. Funds received from the RRF are not treated as taxable income, and expenditures paid with these funds are tax deductible.
Is the RRF forgivable?
Unlike PPP loans, RRF grants are not forgivable loans but are treated as government grants. To the extent RRF grant proceeds are unused during the covered period, or if the entity ceases operations on or before the last day of the covered period, the remaining RRF grant proceeds are to be returned.
How many RRF grants have been funded?
While 101,000 businesses received funding through the RRF, 176,000 eligible applicants did not receive anything.
Is the SBA grant taxable?
These grants are not taxable for California. Established by the Economic Aid to Hard-Hit Small Businesses. Administered by the SBA. Eligible applicants can qualify for a grant equal to 45% of gross earned revenue, up to a maximum amount of $10 million.