Restaurant Revitalization Plan

Restaurant

Revitalization Plan

FUNDING YOUR SUCCESS How to Take Advantage of the Financial Support Available to the Restaurant Industry

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RESTAURANT REVITALIZATION

What’s inside...

- AMERICAN RESCUE PLAN ACT - ELIGIBILITY - HOW TO PREPARE - SYSCO MARKETING SERVICES CONCIERGE

Disclaimer by McCarter & English, LLP: This publication is for informational purposes only and is not offered as legal advice regarding any particular matter. No reader should act on the basis of this publication without seeking appropriate professional advice. Before making your choice of attorney, you should give this matter careful thought. The selection of an attorney is an important decision. If this publication is inaccurate or misleading, the recipient may make a report to the Committee on Attorney Advertising, Hughes Justice Complex, P.O. Box 037, Trenton, New Jersey 08625.

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RESTAURANT REVITALIZATION

American Rescue Plan Act

The U.S Small Business Administration (SBA) is set to launch a phased rollout of the $28.6 billion Restaurant Revitalization Fund (RRF) soon

The restaurant industry is one of the hardest-hit industries during the COVID-19 pandemic. The recently passed American Rescue Plan Act (ARPA) is focused on helping restaurants, bars, and related businesses with a new grant program called the Restaurant Revitalization Fund (RRF).

The American Rescue Plan Act, P.L. 117-2, created the RRF to provide restaurants with grants equal to their pandemic-related revenue loss, up to $10 million per entity, or $5 million per physical location.

American Rescue Plan will be accepting applications based on priority. The plan has set aside $5 billion for the smallest applicants ($500,000 or less in 2019 gross receipts). During the first 21 days of the grants, the SBA is prioritizing applications from restaurants owned and operated or controlled by women, veterans, or socially and economically disadvantaged individuals.

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Who is eligible for RRF grants?

According to the US Chamber of Commerce: • Most restaurants and bars that had revenue loss in 2020 compared to 2019 will be eligible to apply for RRF grants.

HE FOLLOWING TYPES OF EATING T ESTABLISHMENTS SHOULD BE ELIGIBLE:

• • • • • •

Restaurant Food Stand Food Truck Food Cart Caterer Saloon

• • • • • • •

Inn • Licensed Tavern Facility (or premise of a Bar beverage alcohol Lounge producer where the Brewpub public may taste, Tasting Room sample, or purchase Taproom products)

Eligible Entity is an eating establishment that has incurred a “PandemicRelated Revenue Loss” for the period beginning February 15, 2020 and ending December 31, 2021, or a date set by the SBA which cannot be later than March 11, 2023 (“Covered Period”).

RESTAURANT REVITALIZATION

Who Is Not Eligible?

Any eating establishment or bar that is a publicly traded company (or part of one) or owned by a state or local government is not eligible for the grant. In addition, those eating establishments that operate at more than 20 locations are ineligible.

Please note however, if you are the owner of a franchise and you do not own or operate more than 20 locations, you are likely eligible to apply.

What Can The Grant Funds Be Used For?

The funds may be used to pay for the following eligible expenses: • Payroll costs • Principal and interest payments on a mortgage, not including any prepayments on principal • Rent payments, not including prepayments • Utilities • Maintenance expenses including construction to accommodate outdoor seating and walls, floods, deck surfaces, furniture, fixtures, and equipment • Supplies including personal protective equipment and cleaning materials • Food and beverage expenses within the eligible entity’s scope of normal business practice before the covered period, which runs from Feb. 15, 2020, through Dec. 31, 2021, or another date as determined by the SBA • Covered supplier costs • Operational expenses • Paid sick leave • Any other expenses the SBA determines to be essential to maintaining the eligible entity

How and when can I apply?

The Small Business Administration (SBA) who administers and disperses the RRF grants, does not yet have an official launch date. If you are interested in obtaining RRF grants please keep checking this site: SBA’s COVID-19 relief options web portal.

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Size of Grant

The maximum tax-free federal grant is $5 million per location and $10 million in total for an Eating Establishment. For Eating Establishments that were operating for all of 2019 and 2020, the grant can be up to the amount by which its gross receipts for calendar 2019 exceeds its gross receipts for 2020.

If an Eating Establishment was not operating for all of 2019, the grant can be up to the amount by which the annualized monthly gross receipts for 2019 exceeds the annualized monthly gross receipts for 2020.

If an Eating Establishment opened during the period from January 1, 2020 to March 10, 2021, the grant can be up to its payroll costs incurred less its gross receipts.

If an Eating Establishment has not yet opened, its grant can be up to the total amount of “eligible” expenses incurred by the business.

In all cases, however, (a) the Small Business Administration has the authority to provide an alternative formula, (b) the amount of any grant will be reduced by all Paycheck Protection Program loans received by the Easting Establishment and (c) the Eating Establishment will not be eligible for a Shuttered Venue Operators Grant.

RESTAURANT REVITALIZATION

What can i do to prepare?

To make the RRF grant process smoother, begin preparing the following:

An application form and the IRS Form 4506-T. Begin gathering your gross receipts if you are an Applicant in operation before January 1, 2019, you will need both 2019 and 2020 gross receipts. If you are an Applicant that began operations on or between January 1, 2020 and March 10, 2021 and applicants that have not yet opened as of March 11, 2021, but have incurred eligible expenses, gather documentation of gross receipts and eligible expenses for the length of time in operation as this is required.

Where Can I Find Additional Information?

SBA’s COVID-19 relief options web portal • www.uschamber.com • www.sba.gov/funding-programs/loans/ covid-19-relief-options *Reference: US Chamber of Commerce

Allowable documents to show gross receipts and, if applicable, eligible expenses, include: • 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

Visit us at foodie.sysco.com for more helpful tools and information

March 30, the SBA indicated DUN and SAM will not be required to apply for the loan in an effort to streamline and simplify the application process.

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RESTAURANT REVITALIZATION

Concierge IS HERE TO HELP Concierge is here to help.

Sysco Marketing Services will help you reimagine your business with the steps to boost your

success!

As you evaluate your business and expanded services, it’s important that you strategize your menu and marketing plan. This includes current safety and social standards, the power of an online and social media presence, and the creativity and resilience of your team!

Our team of associates is available to assist you.

• • • •

Streamline your operation – smarter, faster, better!

Rethink your business and expand your services Reconfigure your space and implement safety protocols Connect with service partners to setup a website, online ordering, and delivery services • Understand your local, state, and federal guidelines • Communicate with your customers • Access helpful tools, such as Sysco | Studio

Let’s partner to create your menus and marketing.

• • • •

Menus for dine-in, carryout, and delivery Marketing for expanded services Signage to promote safety and sanitation protocol Customer communication and social media messaging

For our concierge service, call 1-800-380-6348 or email info@syscomarketingservices.com

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For more information about how SyscoRESTAURANT can support REVITALIZATION

Serving the Restaurant & Hospitality Industry McCarter delivers innovative legal solutions to clients nationwide. Restaurant, hospitality, food, and beverage industry clients benefit from the firm’s relationship-driven approach, deep understanding of their businesses and legal needs, lean and efficient service model, and determination to help them move their businesses forward.

For more information, contact info@mccarter.com or visit www.mccarter.com.

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Disclaimer by McCarter & English, LLP: This publication is for informational purposes only and is not offered as legal advice regarding any particular matter. No reader should act on the basis of this publication without seeking appropriate professional advice. Before making your choice of attorney, you should give this matter careful thought. The selection of an attorney is an important decision. If this publication is inaccurate or misleading, the recipient may make a report to the Committee on Attorney Advertising, Hughes Justice Complex, P.O. Box 037, Trenton, New Jersey 08625.

RESTAURANT REVITALIZATION

Thursday

Thursday

8

22

April

What you need to know about the Restaurant Revitalization Fund and how it can help your business.

April

11:00 am EST

11:00 am EST

RECORDED SESSION HERE

REGISTER HERE

In this Sysco Foodie Live event, Howard Berkower, partner at McCarter & English, will discuss what the new American Rescue Plan Act of 2021 covers, specifically the Restaurant Revitalization Fund, grant calculations, and other essential details that can support your business.

Howard M. Berkower Partner McCarter & English

Session will be recorded. Unlimited availability.

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For more information on other Foodie Live Sessions please visit: rising.sysco.com RESTAURANT REVITALIZATION

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NEED HELP NAVIGATING THE AMERICAN RESCUE PLAN ACT? Contact your Sales Consultant or Sysco Marketing Services at 1-800-380-6348 or info@syscomarketingservices.com

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RESTAURANT REVITALIZATION