SBA announces opening date for restaurant program – April 30, 2021
TAX ALERT |
Authored by RSM US LLP
Today (April 27, 2021), the Small Business Administration (SBA) announced the Restaurant Relief Fund will be open for registration starting on Friday, April 30, 2021 at 9 am EDT. Applicants can register and then apply starting on Monday, May 3, 2021 at 12 pm EDT. All eligible applicants are encouraged to submit applications as soon as the portal opens, even if the applicant is not a member of a priority group.
The SBA has provided a variety of guidance for potential applicants including a sample application, a knowledge base and a program guide. Potential applications should continue to visit sba.gov/restaurants for the latest guidance.
Documents an applicant should have ready for registration and application include:
- IRS Form 4506-T, completed and signed by Applicant (digitally completed)
- Any of the following documents demonstrating gross receipts:
- Applicants that were in operation prior to or on Jan. 1, 2019, must supply documentation of gross receipts for 2019 and 2020;
- Applicants that began operations partially through 2019, must supply documentation of gross receipts for 2019 and 2020;
- Applicants that began operations on or between Jan. 1, 2020 and ending on March 10, 2021 and Applicants that have not yet opened but as of March 11, 2021, but have incurred eligible expenses, must supply documentation of gross receipts and eligible expenses for the length of time in operations.
- Acceptable documentation of gross receipts and, if applicable, eligible expenses, includes the following:
- 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.
- For Applicants that are a brewpub, tasting room, taproom, brewery, winery, distillery or bakery: In addition to the documents in (1) above, documents evidencing that onsite sales to the public comprise at least 33% of gross receipts in 2019 included in your funding calculation, which may include Tax and Trade Bureau reports filed or to be filed that cover the period for which you are reporting gross receipts, or if applicable, eligible expenses.
- For Applicants that are an Inn: In addition to the documents in (1) above, documents evidencing that onsite sales of food and beverage to the public comprise at least 33% of gross receipts in 2019 included in your funding calculation
- For Applicants that have begun operations on or between Jan. 1, 2020 and March 10, 2021, and for Applicants that have not yet opened but as of March 11, 2021, have incurred eligible expenses may wish to submit a CPA Comfort Letter with their application as this letter provides the fastest SBA review.
The SBA is launching this program with only minimal notice of opening. Applicants should gather this information as soon as possible to be ready for opening day.
This article was written by Mathew Talcoff, Tracy Burr, Ryan Corcoran and originally appeared on 2021-04-27.
2020 RSM US LLP. All rights reserved.
The information contained herein is general in nature and based on authorities that are subject to change. RSM US LLP guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. RSM US LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein. This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer.
RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each is separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/about us for more information regarding RSM US LLP and RSM International. The RSM logo is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.
Gallagher, Flynn & Company, LLP is a proud member of the RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.
Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise and technical resources.
For more information on how Gallagher, Flynn & Company, LLP can assist you, please call (802) 863-1331.