Much-needed funds are now officially available for restaurants and other eligible businesses hurt by the pandemic. The Small Business Administration (SBA) began accepting applications this week for the Restaurant Revitalization Fund, which includes $28.6 billion in grants designed to help the restaurant and hospitality industry bounce back from the impact of closures and restrictions due to COVID-19.
Who Can Apply?
Eligible businesses that have suffered pandemic-related revenue losses 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
Note that permanently closed establishments and publicly traded companies are not eligible for Restaurant Revitalization Fund grants. Additionally, venues that have filed for Chapter 7 bankruptcy or that are liquidating under Chapter 11 are also ineligible.
How to Apply
Eligible establishments should register for an application portal account at restaurants.sba.gov.
How Much Will I Receive?
Grant amounts will equal each business’s “pandemic-related revenue loss,” the difference between 2019 gross receipts and 2020 gross receipts, reduced by the amount of Paycheck Protection Program (PPP) loans received. Grants will be capped at $10 million total and $5 million per physical location. $5 billion of the fund has been specifically allocated for businesses with gross receipts of $500,000 or less.
How Can the Funds Be Used?
Restaurant Revitalization Fund grants may be used for expenses such as:
- 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 or would like to discuss further, please reach out to Jim Sammon at email@example.com or 216.736.7235.