There are a number of reasons why a business may not be eligible for RRF funds. The two most common are listed below.
1. The business is a non-profit or other 501c entity. These organization are not eligible for RRF.
2. The primary business function is not eligible. To be eligible for RRF assistance, the primary purpose of the entity must be to serve prepared food and beverages. Stated another way, the primary purpose is for people to assemble for the purpose of being served food or beverage.
This eligibility standard must be met in addition to the 33% food/drink sales standard. Even if you meet the 33% food/drink standard, you must have an eligible primary purpose.
The primary purpose of a business may be verified using tax return business codes, prior SBA loan info (PPP Naics codes) and other private and public data.
.For example, the following business types may not be eligible based on available data of primary business function. The below list is a sample of possible ineligible business and each case is separately reviewed.
- An indoor arcade and entertainment venue with an embedded restaurant (single EIN/Tax return)
- A hotel with a restaurant (single EIN/Tax return)
- A golf course with a restaurant (single EIN/Tax return)
- A grocery store/market that has made to order food and a sitting area.
- A pool hall with a snack bar
- Vending machine operators
In the cases above, the available documentation and data may indicate the restaurant is a secondary business function even if food and drink exceed 33%.