Applications for the Restaurant Revitalization Fund are now open, as the Small Business Administration began accepting applications from restaurants on Monday, May 3. During the initial 21-day period, the SBA will prioritize awarding grants to businesses that are owned and controlled by women, veterans and those who are socially and economically disadvantaged.
The American Rescue Plan signed into law on March 11, 2021, created the $28.6-billion dollar Restaurant Revitalization Fund (RRF) for struggling restaurants, bars, and other food and beverage associated businesses. Businesses can access the amount equal to lost revenue during the pandemic up to $10 million.
“It breaks my heart when I drive around and see some of our favorite restaurants closing. While we’re almost out of this pandemic, our restaurants and bars need our help now more than ever,” said Congressman Josh Harder, CA-10. “This new batch of funding should help keep our folks going until we’re completely opened back up, and I hope every restaurant owner in the Valley takes advantage.”
Restaurants should visit SBA.gov/restaurants today to register for the SBA application portal, review program guidance, collect proper documentation, and view a sample application.
Who can apply?
Eligible Businesses are:
Restaurant, food stand, food truck, food cart, caterer.
Saloon, inn, tavern, bar, lounge, brewpub, tasting room, taproom.
Licensed facility on the premise of a beverage alcohol producer where the public may taste, sample, or purchase products, or other similar place of business in which the public or patrons assemble for the primary purpose of being served food or drink.
How much can I get?
Eligible businesses can receive equal to the amount of revenue lost during the pandemic. Maximum award is $10 million. Minimum award is $1,000.
What can I use the funds for?
Funds can be used for expenses incurred in order to maintain businesses operations during COVID-19. Funds must be used by Dec. 31, 2021. Any funds left over must be returned to the SBA by that date.
Eligible expenses include:
Payments of principal or interest on any mortgage obligation (which shall not include any prepayment of principal on a mortgage obligation).
Rent payments, including rent under a lease agreement (which shall not include any prepayment of rent).
Maintenance expenses, including construction to accommodate outdoor seating; and walls, floors, deck surfaces, furniture, fixtures, and equipment.
Supplies, including protective equipment and cleaning materials.
Food and beverage expenses that are within the scope of the normal business practice of the eligible entity before the covered period.
Covered supplier costs, as defined in section 7A(a) of the Small Business Act.
Paid sick leave.
Any other expenses that the Administrator determines to be essential to maintaining the eligible entity.
How do other SBA grants/funds affect eligibility?
Businesses must not have applied for or received the Shuttered Venue Operators Grant.
Money received by the Paycheck Protection Program is considered revenue.
Economic Injury Disaster Loans (EIDL) and the Employee Retention Tax Credit (ERTC) program are not considered revenue.
Who is not eligible?
Publicly traded companies.
Businesses with more than 20 locations (regardless if business has multiple names).
Businesses owned by the state or local government.