the challenge
The COVID-19 pandemic brought the hospitality industry to its knees. Restaurants, cafes, and hotels were caught in a vicious cycle of wanting to fully open but lacking the resources they needed to meet demand. Many of our clients struggled as they were forced to close their doors or meet rigid restrictions to protect the health and safety of the public
the workflow
In May 2021, Bandicoot seized a vital opportunity on behalf of its clients that many other accounting firms missed - the Restaurant Revitalization Fund.
The Restaurant Revitalization Fund (“RRF”) was designed by Congress as part of this year’s American Rescue Plan Act. About $28.6 billion worth of RRF grants were awarded to restaurants, bars and food trucks throughout the nation. RRF grants do not need to be repaid and are more flexible than loans under the Paycheck Protection Program, answering a call from restaurant and bar owners for more versatility with relief funds.
The program provided restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Money could be used for eligible expenses like mortgage, rent, debt, utilities, business operating costs and similar necessities before March 11, 2023 does not have to be repaid.
the case
For example, because of Bandicoot’s proactive and early application on behalf of one of our clients, they received over $700,000, approximately ten times the size of their Paycheck Protection Program (“PPP”) loan, to rebuild their restaurant chain and put their business back on track. They were able to use the funding on operations, payroll rent, utilities, and debts, allowing them to reach their pre-pandemic success. Bandicoot provided guidance as to the appropriate uses of the funds so as not to incur repayment requirements.
In addition to the RRF, Bandicoot obtained a PPP loan and the Hennepin County Grant (in Minnesota) for our clients, maximizing their chances for a successful second start.
in conclusion
As a result of our efforts, not only were our clients able to reopen fully and resume their restaurant businesses, they were able to outpace their previous success. Bandicoot continued to assist them to scale up. Nothing makes us happier than seeing our clients succeed.