The American Rescue Plan Act introduced several new relief programs for small businesses, including the Restaurant Revitalization Fund—designed to provide relief for restaurants and other food and drink establishments that were hit hard in the last year as a result of the ongoing COVID-19 pandemic.
Run by the Small Business Administration (SBA), the Restaurant Revitalization Fund has been allocated $28.6 billion to be paid as tax-free grants to restaurants, bars, and food and beverage businesses. Eligible businesses can apply for a grant of up to $5 million per physical location (up to $10 million per entity) to be used for continuing operating expenses. Grant amounts will be calculated by subtracting 2020 gross receipts from 2019 gross receipts, reduced by the amount of any Paycheck Protection Program (PPP) loan, if the entity has received one.
Funds may be used for a covered period of February 15, 2020 through December 31, 2021, for payroll costs, mortgage payments, rent payments, utilities, maintenance expenses, supplies, food and beverage expenses, covered supplier costs, operational expenses, paid sick leave, and other essential expenses.
If funds are not used on allowable expenses, or the business permanently ceases its operations before the end of 2021, any funds that have not used for allowable expenses are required to be returned.
Is your business eligible?
In order to qualify for a Restaurant Revitalization Fund grant, your business must meet the following criteria:
- The entity must be a restaurant, food stand, food truck/cart, caterer, saloon, inn, tavern, bar, lounge, brew pub, tasting room, tap room, or similar place of business in which the public or patrons assemble for the primary purpose of being served food or drink.
- The entity must provide a good faith certification that the funds are necessary to support the ongoing operation of the business.
The SBA expects to open the application process for the Restaurant Revitalization Fund within the next several weeks. If you have questions about the Restaurant Revitalization Fund or your eligibility, leave a comment below, or feel free to reach out directly. I am happy to help!