Struggling businesses in the restaurant industry may be eligible for new relief, but they need to act quickly.
The U.S. Small Business Administration (SBA) recently released updated details for the Restaurant Revitalization Fund (RRF) program. The $28.6 billion RRF program was established by the American Rescue Plan, which was signed into law on March 11. The program is open to businesses in the restaurant industry that lost revenue due to the pandemic.
Eligible businesses include restaurants, food trucks and carts, caterers, bars, food stands, bakeries, saloons, taverns, lounges, distilleries or taprooms with on-site public sales, hotels or inns with on-site sales, and similar businesses with the primary purpose of serving food or drink.
The SBA opened an application portal for eligible applicants on May 3, with priority given to women-owned businesses, veteran-owned businesses, and minority-owned businesses. As of May 13, the RRF had already distributed $2.7 billion of relief to 21,000 restaurants with more to quickly follow. Most of the relief so far has been distributed to small restaurants and bars in underserved communities.
There is still limited funding available for eligible restaurants with 2019 revenue of no more than $50,000. Establishments meeting that criteria should apply on the SBA online application portal.
Applicants will need to verify tax information and submit documents that reflect eligible expenses and receipts. Breweries, wineries, bakeries, inns, and other related businesses will need to prove that at least 33% of their gross sales were from public sales on-site.
The RRF provides grants from $1,000 to $5 million per location, with a limit $10 million per applicant or entity. To calculate the grants, 2020 revenue will be subtracted from 2019 revenue.
Funds from the RRF can be used for a variety of expenses, including:
Gross receipts for the RRF will not include amounts from PPP loans, EIDL, EIDL advances, state and local grants, or SBA Section 1112 payments.
The professionals at BSB are monitoring the latest developments and providing updates as soon as they become available. Please keep checking for more information and contact us with any questions you have.