Publication date: 08.04.2025
Basil Chochla is a Certified Public Accountant (CPA) and tax advisor based in the US. Founder of The Bee Dance CPAs. He specializes in tax planning, small business accounting, financial consulting, and international taxation for entrepreneurs and investors.
How a NYC Restaurant Secured $20 Million During the Pandemic: A Strategic Tax Structuring Case
During the COVID-19 pandemic, thousands of restaurants across the United States were on the brink of permanent closure. According to 2021 data, only 15% of the 660,000 operating restaurants received any government financial aid. One of the rare examples of successful crisis financial management is this NYC restaurant case, guided by the experts at The Bee Dance CPAs, which turned a major threat into a massive growth opportunity.
This case demonstrates the power of proper tax structuring, understanding of U.S. legal entity status, and a strategic approach to applying for COVID-related business relief. The most notable achievement was securing nearly $20 million, including $13 million from the Restaurant Revitalization Fund (RRF)—even though the official program limit was $10 million.
Key Achievements
- $13M secured from the RRF—above the cap, due to legal strategy
- Additional ~$7M raised through other COVID-relief programs
- Business operations restored after full closure
- Over 300 employees hired, many from immigrant communities, including Ukrainians
- Two new locations opened in NYC, one more in another state
- A third state expansion planned
Project Execution Steps
- Business structure assessment
.
The restaurant operated as a Single-Member LLC, which—if properly documented—can qualify as a disregarded entity for tax purposes, allowing unique tax treatments and flexibility with grant eligibility. - Legal documentation and justification.
The Bee Dance CPAs prepared and submitted thorough documentation proving the restaurant’s status as a disregarded entity, allowing the client to bypass standard funding caps. - COVID funding application and representation.
With expert legal and accounting support, the restaurant secured funding that exceeded the $10M cap by 30%, thanks to proper eligibility arguments and social impact factors. - Post-funding financial modeling and growth strategy.
A portion of the funds was used to restore operations, and another to open new locations. Experts developed an effective capital allocation and growth model. - Compliance support and grant management.
Ongoing monitoring of grant conditions, proper fund usage, tax filings, and financial reporting to meet federal program requirements.
Areas of Expertise Applied
Tax and legal structuring
Establishing and proving the LLC’s disregarded entity status, enabling extended grant access
COVID-related grant navigation
Preparation and filing of relief applications, eligibility analysis, legal argumentation
Post-crisis financial strategy
Designing business expansion plans, budgeting, and sustainable workforce growth
Frequently Asked Questions
Question
Can a business receive more than $10M from RRF as an LLC?
Answer
Yes, if the LLC is a single-member entity and legally qualifies as a disregarded entity. This status allows eligibility beyond standard limits, as shown in this case.
Question
Who can assist with this kind of COVID funding and tax setup?
Answer
Only an experienced CPA with legal knowledge of U.S. entity classification, grant programs, and IRS requirements. The Bee Dance CPAs offered precisely that expertise.
This case is a powerful example of how a small business’s survival and expansion depend not only on product or service, but also on expert financial and legal strategy. Through precise tax structuring, legal positioning, and strategic thinking, the team helped the NYC restaurant:
Avoid permanent closure during the pandemic
Access funding beyond standard government limits
Create hundreds of jobs
Establish a foundation for national growth
COVID business relief isn’t just about money—it’s about opportunity. And only those who combine accounting expertise, legal literacy, and strategic insight can unlock its full potential. That’s exactly how The Bee Dance CPAs work.
