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If my town/city/village takes the standard allowance for revenue loss for our whole ARPA award, then do we need to demonstrate that we had that amount in actual revenue loss?

No. Treasury presumes that revenue has been lost due to the public health emergency and recipients are permitted to use that standard allowance approach (not to exceed the award amount) to fund “government services.”  

Treasury's methodology for determining the $10 million standard allowance is discussed in the final rule on page 240; presumption is on page 249