Restaurant Revitalization Fund
The American Rescue Plan Act Established a
$28.6B SBA Grant Program
The Restaurant Revitalization Fund (RRF) is a $28.6B SBA grant program established through the American Rescue Plan Act. The grant is calculated by taking your 2019 gross receipts and backing out your 2020 gross receipts and PPP loan funds.
Many businesses in the food and beverage industry have been struggling through the pandemic and Synergi Partners is prepared to help guide you through the complex grant process. This time sensitive program will allow you to quickly infuse funds into your business.
Let Synergi Partners assess the opportunity, maximize benefits, and manage the grant process from application to approval. As always, Synergi Partners will keep your business in compliance and provide audit support.
There are some parameters around eligibility. Organizations must own or operate 20 or fewer establishments. Ineligible businesses include publicly traded companies, businesses that have applied for the Shuttered Venue Operator Grant, and state or local government operated businesses. Below lists the businesses that are eligible for the grant:
The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law on March 27, 2020, to address the negative economic impact of the COVID-19 pandemic. Within the CARES Act, Congress created the Employee Retention Credit (“ERC”), a fully refundable payroll tax credit, to provide aid to employers impacted by the COVID-19 pandemic.
As originally passed, the ERC was available to eligible employers from March 13, 2020, to December 31, 2020, and was equal to 50% of up to $10,000 in qualified wages paid to an employee during the year—a credit opportunity of up to $5,000 per employee for the 2020 tax year. Subsequent legislation (the Consolidated Appropriations Act, the American Rescue Plan Act, and the Infrastructure Bill) was enacted to address the continued economic impact of the COVID-19 pandemic which included certain enhancements and amendments to the ERC. Among the enhancements were:
Eligibility for the ERC is evaluated on a quarterly basis and is based on each employer’s specific facts and circumstances. An employer is eligible for the ERC if it experienced either:
Subject to certain limitations, PPP recipients and certain instrumentalities of the government are generally permitted to claim the ERC if they meet one of the above eligibility tests.
Employers who are eligible for the ERC in a given quarter may qualify for 50% of up to $10,000 in qualified wages in 2020 per employee for the year, and 70% of up to $10,000 in qualified wages per employee, per quarter in 2021. The total potential ERC for an employer is $26,000 per employee.
The wages that may qualify for the ERC (the “Qualified Wages”) varies depending on an employer’s average full-time headcount in 2019. A “small” employer’s Qualified Wages during an eligible quarter may include all wages paid and employer paid qualified health plan costs. Qualified Wages for a “large” employer during an eligible quarter are wages paid not in exchange for a service and an allocable portion of employer paid qualified health plan costs.
A “small” employer is defined in 2020 as an average of 100 or less full-time employees in 2019, and an average of 500 or less full-time employees in 2019 for the 2021 credit. A “large” employer is defined in 2020 as an employer with an average of more than 100 full-time employees during 2019, and an average of more than 500 full-time employees in 2019 for the 2021 credit.
The ERC can be monetized by completing an IRS Form 941-X and requesting a refund from the IRS.
Synergi is prepared to guide you through this process. Reach out to us now to get started:
The Disaster ERC was introduced to encourage employers impacted by qualified disasters to retain employees while their businesses returned to normal operations.
Synergi Partners evaluates tax credit eligibility for organizations conducting business in Federally designated disaster areas. Synergi Partners has developed an “Operational Impact Analysis”.
How does Synergi determine if my business qualifies for a retention credit? Synergi reviews different areas of the business that affected your operations. These areas include:
The Work Opportunity Tax Credit (WOTC) is a federal hiring incentive program that allows your business to receive up to $9,600 in tax credits per each eligible new hire.
The partnership between Restaurant365 and Synergi positions you for success, growth and profitability. We recognize your need for great talent and industry leading tax credit consulting and technology. We look forward to having you as part of our family. Please follow the instructions below to get started.
The Work Opportunity Tax Credit is a federal hiring incentive that provides a tax credit worth up to $9,600 if your company is hiring from any one of the following groups:
Tax credits off-set tax liability dollar for dollar. Some companies use credits in their tax planning to off-set quarterly estimated payments. Some companies use credits at the end of their tax year against annual tax liability. In the event of no tax liability, tax credits can be carried forward for up to twenty years. Consult with your tax professional for how to best use these incentives.
The life of a tax credit can be a year or more. The process begins with screening your new hires and ends with delivery of a certified and calculated tax credit. We manage this for you.
Synergi beats the competition when it comes to screening, eligibility, forms compliance, certifications, and reporting
Our CPA had calculated a tax credit based solely on payroll but Synergi looked into how our daily operations were affected and found an additional $50K in credits.
Working with Synergi Partners has been a home run for us. Our CARES Act Employee Retention Credit that we are anticipating is in the millions! For us, this is instrumental in keeping our family-owned business moving full steam ahead. Their diligence, detailed analyzation and patience has made this working relationship so valuable. Thank you!
The Synergi Team are plugged in legislatively and have great relationships with the state WOTC coordinators which has really helped us improve turnaround times with the states. We are very pleased with their results.