News Release: SBA to Open Applications for Restaurant Revitalization Fund Soon
SBA to Open Applications for Restaurant Revitalization Fund Soon
Half a million independent restaurant owners across the U.S. celebrated a major victory when Congress passed a rescue package for small businesses that includes billions of dollars in federal aid for restaurants that suffered financial losses related to the pandemic.
The $28.6 billion Restaurant Revitalization Fund, which is part of the American Rescue Plan Act, offers direct grants to restaurants and other qualifying food businesses. This program will be administered through the SBA.
Who is eligible?
Eligible entities are those who own or operate 20 or fewer establishments (together with any affiliated business), regardless of ownership type of the locations and whether those locations do business under the same or multiple names, as of March 13, 2020. This includes restaurants, food stands and trucks, caterers, bars and pubs, and several other types of entities in the food service industry. $5 billion in funding is reserved for the smallest independent restaurants, which before COVID-19 earned $500,000 or less in a year. Chain restaurants with more than 20 locations are excluded, as are publicly traded companies.
How much can you get?
Eligible businesses may receive a tax-free federal grant equal to the amount of its pandemic-related revenue loss, calculated by subtracting its 2020 gross receipts from its 2019 gross receipts and any PPP funds.
What can it be spent on?
Funds must be spent on payroll; principal or interest on mortgage obligations; rent; utilities; maintenance; construction to accommodate outdoor seating; supplies, such as protective equipment and cleaning materials; normal food and beverage inventory; certain covered supplier costs; operational expenses; paid sick leave; and any other expenses that the SBA determines to be essential to maintaining operations.
How do I apply?
The SBA must still design rules and regulations for the program, therefore the application process has not started. Additional information, when available, will be posted on the SBA’s website.
For questions about this fund, please contact us.