Restaurant Revitalization Fund Opens Today
The Restaurant Revitalization Fund, a $28.6 billion program from the US Small Business Administration to help eligible restaurants, bars, and other qualifying businesses impacted by the COVID-19 pandemic, begins accepting applications today.
For the first 21 days, applications from small businesses owned by women, veterans, and socially and economically disadvantaged individuals will be prioritized.
Is my business eligible?
Eligible entities who have experienced pandemic-related revenue loss include:
- Food stands, food trucks, food carts
- Bars, saloons, lounges, taverns
- Snack and nonalcoholic beverage bars
- Bakeries (onsite sales to the public comprise at least 33% of gross receipts)
- Brewpubs, tasting rooms, 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 of food and beverage to the public comprise at least 33% of gross receipts)
- Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products
How do I apply?
Eligible businesses can apply through SBA-recognized third-party point-of-sale vendors, including Square, Toast, Clover, NCR Corporation (Aloha), and Oracle, or directly through the SBA using the online application portal.
How much will I receive?
The program will give restaurants with grants up to $10 million per business and no more than $5 million per physical location. The minimum award is $1,000.
The amount of funds an eligible business may receive is determined as follows:
For applicants in operation before or on Jan. 1, 2019: 2019 gross receipts minus 2020 gross receipts minus Paycheck Protection Program (PPP) loan amounts.
For applicants that began operations partially through 2019: (Average 2019 monthly gross receipts times 12) minus 2020 gross receipts minus PPP loan amounts.
For applicants that began operations on or between Jan. 1, 2020, and March 10, 2021, that have not yet opened but have incurred eligible expenses: Amount spent on eligible expenses between Feb. 15, 2020, and March 11, 2021, minus 2020 and 2021 gross receipts (through March 11, 2021) minus PPP loan amounts.
What can the funds be used for?
Funds may be used for specific expenses including:
- Business payroll costs (including sick leave)
- Payments on any business mortgage obligation
- Business rent payments (note: this does not include prepayment of rent)
- Business debt service (both principal and interest; note: this does not include any prepayment of principal or interest)
- Business utility payments
- Business maintenance expenses
- Construction of outdoor seating
- Business supplies (including protective equipment and cleaning materials)
- Business food and beverage expenses (including raw materials)
- Covered supplier costs
- Business operating expenses
If you have questions about the Restaurant Revitalization Fund, contact us today to discuss your specific situation.
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