RRF funding has started!
We've been in touch with 6 different clients in the past two days who have already received funding. None of them were part of the priority group so good to know that funding has reached throughout.
Lots of questions surround the program , so let us point out some of the highlights:
- The covered period is February 15, 2020 through March 11, 2023. This means that RRF funds can be used for eligible expenses in this period. More specifically, it means that eligible expenses already paid can be reimbursed from the RRF funds. For example, if you already paid $100k in 2020 for eligible expenses, you can apply those expenses towards RRF useage and free up those funds to be used for any other business expense.
- Eligible expenses include payroll, rent, food & beverage costs, utilities, repairs and most operating expenses.
- Non eligible expenses include owner profit distributions and prepayment of outstanding loans.
- $100k is the maximum salary (pro rated for the pay period) that can be paid to any employee or owner. For example, if your payroll is bi-weekly, $3846 is the maximum eligible salary that can be paid.
- Just because $100k is the maximum salary doesn't necessarily mean that's the amount an owner can be paid. For example, if pre covid, $25k was the annual owner salary, $25k will probably be the maximum eligible amount to be paid from RRF funds. (This is a big gray area, best discussed individually.)
Keep in mind that payroll used to qualify for PPP or ERTC can't also be used to qualify for RRF.
If you have received the RRF funding, our recommendation is to develop a plan so that spending conforms to RRF rules.
We can help with that!
If you have questions, please let us know.