On June 30, the U.S. Small Business Administration (SBA) sent an email to all Restaurant Revitalization Fund (RRF) applicants announcing the official shutdown of the program. What should you know if you’re one in a majority of restaurant operators whose grant application is still pending?
You’re not alone. In fact, more than 265,000 restaurant operators are still waiting for their RRF funds to be processed. In the past day, we’ve heard from many of you who are concerned about the future of your RRF grant.
RRF funds have been depleted since late May, having run through the $28.6 billion allotment as part of the American Rescue Plan Act in just three weeks. But on June 30, 2021, the U.S. Small Business Administration (SBA) sent an email to all RRF applicants, indicating the program’s official “shutdown.” Still, the RRF portal will remain open to applicants for two weeks (or until July 14, 2021) after which time it will be “disabled.” At this point, no new applications will be accepted or processed.
Raj Tulshan, founder of Loan Mantra says, “the email announcing the program shutdown caused immediate panic and confusion for restaurant operators who have yet to receive their RRF grants. Additional funding is crucial for this hard-hit industry and for small business owners who are revitalizing and nourishing their communities to normalcy after a dark and challenging year.”
The prevailing hope for more than half of applicants who remain in the RRF funding queue comes from legislation currently in the U.S. Senate. The bipartisan Restaurant Revitalization Fund Replenishment Act seeks the additional $60 billion dollars needed to process all pending applications. At this point, more than 55% of RRF applications remain unfunded and 90,000 U.S. restaurants are closed long-term or permanently.
Given controversy surrounding the disbursement of the RRF in recent weeks, lobbyists of all kinds are pushing for additional funds so every applicant can receive funding. Loan Mantra is hopeful the Replenishment Act will be approved sometime this month so applicants can receive funding later this summer.
As always, Loan Mantra is committed to helping you prepare for a brighter financial future through our financial expertise and our best-in-class fintech, BLUE. If your application is still in the RRF queue, please don’t panic. We’ll continue to advocate and work with you once we obtain more information from Congress. Until then, continue to do what you do best: operate your business. We’ll help you take care of the rest.