Restaurant Revitalization Grant
On Friday, March 11, 2021, the President signed into law the American Rescue Plan Act of 2021. The act includes much-needed financial relief for restaurants and bars by earmarking $28.6 billion in targeted grants to small businesses. Restaurants financially impacted by COVID-19 may be eligible for a grant up to $10 million to cover eligible expenses going back to February 15, 2020 (through December 31, 2021 with possible extensions).
Who is Eligible?
- Restaurants
- Food stands, food carts, food trucks
- Caterers
- Bars, lounges, saloons, taverns
- Snack and nonalcoholic beverage bars
- Bakeries (onsite sales to the public comprise at least 33% of gross receipts)
- Brewpubs, tasting rooms and taprooms (onsite sales to the public comprise at least 33% of gross receipts)
- Breweries and/or microbreweries (onsite sales to the public comprise at least 33% of gross receipts)
- Wineries and distilleries (onsite sales to the public comprise at least 33% of gross receipts)
- Inns (onsite sales to the public comprise at least 33% of gross receipts)
- Other licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products
See cross-program eligibility: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/cross-program-eligibility-sba-covid-19-relief-options
Allowable Grant Uses
Eligible entities are required to spend the grant money on certain eligible expenses, such as
- Payroll costs (including paid sick leave)
- Mortgage obligation (excludes prepayment of rent)
- Debt service (both principal and interest, excludes prepayment of principal or interest)
- Rent payments
- Utilities
- Maintenance expenses
- Construction of outdoor seating
- Supplies (includes PPE and cleaning materials)
- Business food/beverage expenses
- Covered supplier costs
- Operational expenses, utilities, etc.
How to Apply
Registration for the SBA application portal is now open. Applications will open on Monday, May 3, 2021, at noon ET. See How to apply for more detail.
Priority Groups: During the first 21 days, priority will be given to those entities owned and controlled by women, veterans, and socially and economically disadvantaged individuals.
Set Asides:
- $5 billion of the $28.6 billion will be reserved for applicants with less than $500,000 in gross receipts in 2019.
- $4 million is set aside for applicants with 2019 gross receipts from $500,001 to $1,500,000.
- $500 million is set aside for applicants with 2019 gross receipts of not more than $50,000
Payment Calculations/Amounts
- For applicants operating prior to or on January 1, 2019:
- 2019 gross receipts minus 2020 gross receipts minus any PPP loan amounts
- For applicants partially operational through 2019:
- (Average 2019 monthly gross receipts x 12) minus 2020 gross receipts minus any PPP loan amounts
- For applicants that began operating on or between January 1, 2020 and March 10, 2021 and applicants who have not yet opened but have incurred eligible expenses:
- Amount spent on eligible expenses between February 15, 2020 and March 11, 2021 minus 2020 gross receipts minus 2021 gross receipts (through March 11m 2021) minus any PPP loan amounts
For those applicants who began operations partially through 2019, you may elect (at your own discretion) to use either calculation 2 or calculation 3.
The SBA may provide funding up to $5 million per location, not exceeding $10 million total for the applicant and any affiliated businesses. The minimum award is $1,000.
Questions?
For more information, visit the SBA website: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/restaurant-revitalization-fund
