How the Restaurant Revitalization Fund Can Help Your Business
Throughout many years of working with restaurants, our goal has always been to assist restaurants at every stage. We know this past year has been extremely difficult and challenging in navigating a new world, so we wanted to pass along the good news that restaurant relief is on the way!
As of Friday March 11, 2021, the American Rescue Plan Act was passed (a $1.9 trillion COVID-19 relief bill that includes boosts in funding for restaurants, unemployment insurance changes, and stimulus check details). This legislation includes the $28.6 billion Restaurant Revitalization Fund which will provide debt-free relief for small and mid-sized restaurants. This bill will provide up to $5 million in grants for individual restaurants, bars, caterers, breweries, and tasting rooms and up to $10 million for restaurant groups. With an emphasis on independently owned operations, this fund will focus $5 billion on applicants with revenues of $500,000 or less.
Is my business eligible for this relief?
Eligible businesses include:
- Brewpubs/Tasting Rooms/Taprooms
- Food trucks/carts/stands
To qualify for the relief, business must be in one of the above categories and must not be in an affiliated restaurant group with more than 20 locations. In the first three weeks of this legislature’s rollout, businesses owned by women, veterans, people of color, and socially and economically disadvantaged individuals will be prioritized in the application process.
How much relief will my business receive?
Food and drink businesses that fit in the above categories will qualify for grants that are equal to the difference between their 2020 and 2019 revenues (up to $10 million per company and $5 million per location).
What can I use the relief on?
These grants will cover:
- Payroll expenses (excluding employees compensation exceeding $100,000 per year)
- Employee benefits and paid sick leave
- Business mortgage, rent, and utilities
- Outdoor seating construction
- Supplies, PPE, and cleaning materials
- Operational expenses
- Debt obligation to suppliers
Please note, unused funds or funds used on ineligible purchases must be returned to the government.
Where can I apply for this grant?
Once applications are open, you can apply for the grant through the Small Business Association.
We hope passing this information along can help your restaurant. We’re looking forward to more prosperous times and wish you continued success as your business continues to thrive!