Welcome to the OrderUp Restaurant Revitalization Grant Calculator. It’s simple, and only meant to be an estimation. Calculate the eligible grant amount for your restaurant under the Restaurant Revitalization Fund.
If you have used any of your eligible Payment Protection Program (PPP) loans, those sums will be deducted from your eligible amount.
Your eligible grant amount, as stated in section 5003 of the American Rescue Plan act of 2021 is based on your restaurants’ Gross Receipts of 2019, less your Gross Receipts of 2020.
Your Paycheck Protection Program loan (in general) is calculated by taking Gross income 2019 or 2020 (capped at $100,000), less payroll costs of that year. For an estimation, take your average monthly payroll costs and multiply by 2.5.
See the section below for more details surrounding calculating PPP.
Restaurant Revitalization Grant Calculator
The official calculation of your eligible grant amount is:
- No commas or periods (.,,)
- Click “Calculate My Maximum Grant Eligibility” or hit “Enter” on your keypad.
Use of Restaurant Revitalization Grant Funds
It’s important to note that these funds are eligible, and must be used between February 15, 2021 – December 31, 2021. It is possible to extend the use of funds in certain cases. Any funds not used by the determined “end date” must be returned to the Treasury. In other words, you need to spend the money (and you might as well use it!).
Eligible Expenses Include:
- Payroll expenses
- Mortgage payments, including principal and interest
- Construction of an outdoor seating area
- Maintenance of walls, floors, fixtures, furniture, deck surfaces and equipment
- Supplies — including personal protective equipment and cleaning supplies
- Food and beverage expenses you would have incurred under normal circumstances
- Paid sick leave
- Operating expenses
- Including credit card transaction fees
- Supplier costs
Paycheck Protection Program (PPP)
The Paycheck Protection Program (PPP) was first introduced as an incentive to keep your employees on the payroll. The PPP is a forgivable loan, as long as you can prove 60% of it went to eligible expenses.
In order to qualify for the Second Draw PPP, you must have already applied and used the First Draw.
The reason why the PPP sum is removed from the Eligible Restaurant Grant amount is to avoid “double-dipping” in payroll. Essentially, both PPP and the Grant can go towards payroll expenses, but the PPP is meant to be spent on payroll.
The actual amount also depends on what type of business you own. Are you a sole proprietor, Limited Liability Company (LLC) or in a Partnership? The difference is in how the government taxes these entities differently.
Forgivable Use of PPP Loans
To have your loan forgivable – applicants must prove the funds were spent on allowable costs. The timing for this is either during an 8 or 24 week period following the disbursement. For the loan to be deemed forgivable, 60% must be spent on any of the following.
- Payroll Expense
- Gross Salary or Wage
- Gross Commissions
- Paid Leave
- Allowances for Dismissal
- Employee Benefits
- Mortgage Interest
- Operational Expenses:
- Software (like us.. except we want to support you, not take from you. Thus why we’re free)
- Property Damage
- Costs due to public disturbances in 2020 that insurance did not cover
- Supplier Costs
- Essential purchases that your business obtained prior to the loan in which a contract, order, or proof of purchase was in effect before the loan
- Worker Protection Gear
- All personal protective gear, face masks, sanitation, state regulations
Calculating Eligible PPP Loan
In general, a restaurant is eligible for up to $2 million per location, and a total of $4 million. To qualify, restaurants must have less than 300 employees and have experienced a drop in sales of more than 25% in one quarter of 2020 compared to the same quarter in 2019.
Taking that into account, at least 60% of the loan must be spent on eligible expenses to qualify for forgiveness.
PPP For Sole Proprietorships & LLC’s
If you’re a sole proprietor, you can calculate this by taking your 2019 or 2020 gross profit (which can be found on your Schedule C, line 7). Minus payroll costs found on lines 14, 19, and 26. If your gross profit for 2019 or 2020 is over $100,000, this is the maximum amount you can use for this calculation.
Take the difference between net profit (line 7, or $100,000) and the payroll costs, then divide by 12. This will give you your “Monthly Payroll Costs” for the PPP application.
Multiply the Monthly Payroll Cost by 2.5, and report this number in the “Loan Request” box. This is the amount of PPP you can qualify for.
This number is capped at $100,000 max per employee.
If you happen to share a sole proprietorship with a spouse, you cannot use them on this application unless they are a W2 employee.
PPP For Partnerships & LLC’s
If your restaurant is a partnership like many, your salary will be closely related to the profit. Use your 2019 or 2020 salary is most easily determined through the respective years tax return (known as Form 1065).
For each partner, use Line 14: “Self-Employment-Income” on the Schedule K-1 as individual salaries. Remember these are capped at $100,000 for each member if necessary. Then you will multiply this number by 0.09235. This is done to remove the partnerships entity’s share of self-employment tax.
For your employees, you will also include the costs of their salaries, payroll taxes, contributions, benefits, sick pay and so on.
Add these together and that will be your total payroll costs. In the PPP application, this will need to be broken down into “Monthly Payroll Costs”, so divide that number by 12. Then multiply that number by 2.5 to get the “Loan Request” number.
Message to Restaurant Owners
We understand that this is an extremely busy time for restaurants. Whether you’re just re-opening, or expanding operations – you’re busy. You have enough on your plate as it is running a restaurant, it may be overwhelming trying to understand the intricacies between government loans, grants, taxes, and accounting. While we’re not pretending to be accountants, we do offer our professional support, advice, or guidance as you navigate through these times.
If you have any questions surrounding grant applications, PPP loans, or other available options, simply send us an email at email@example.com or drop your email in the little chatbot to the right. Whether you’re an OrderUp partner or not – we’ll do our best to help you out.
At OrderUp, we offer free digital menus, as well as a commission-free order and pay solution for your dine-in and on-premise takeout needs. You never pay us a dime.
We made this product with you in mind. The restaurant owner. The innovative manager. The forward-thinking staff member.
We made this product as we, like so many, lost our jobs to a virus.
We’re former servers, dishwashers, managers, cooks & hosts.
We want to help you run profitably, and independently. Free of commission, free of third parties. Almost back-to-the-basics approach, except with a twist of technology to make your life easier.