The SBA will begin accepting application for Restaurant Revitalization Fund grants on Monday, May 3rd, at 12:00 PM ET. The portal has been opened on the SBA website at https://www.sba.gov/funding-programs/loans/covid-19-relief-options/restaurant-revitalization-fund to allow businesses to register and prepare to submit applications. Established under the American Rescue Plan Act (ARPA), and signed into law by President Biden on March 11, 2021, the Restaurant Revitalization Fund provides a total of $28.6 billion in direct relief funds to restaurants and other hard-hit food establishments that have experienced economic distress and significant operational losses due to the COVID-19 pandemic.
Overview of the Restaurant Revitalization Fund
- Provides financial relief for eligible restaurants, bars, and other qualifying businesses impacted by COVID-19
- Provides eligible businesses with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location.
- Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023
- Registration for the SBA application portal begins on Friday, April 30, 2021, at 9:00 AM ET and applications will open on Monday, May 3, 2021, at 12:00 PM ET
- Applications are time sensitive and will be processed in the order that they are received
Eligibility Requirements
- Any business that has on-site sales of food or beverage to the public that comprised at least 33% of total gross receipts in 2019
- Eligible businesses include the following:
- Restaurants
- Food stands, food trucks, food carts
- Caterers
- 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
Eligible Funding Amount
- Calculation 1: for applicants in operation prior to or on January 1, 2019:
- 2019 gross receipts minus 2020 gross receipts minus PPP loan amounts
- Calculation 2: for applicants that began operations partially through 2019:
- (Average 2019 monthly gross receipts x 12) minus 2020 gross receipts minus PPP loan amounts
- Calculation 3: for applicants that began operations on or between January 1, 2020 and March 10, 2021 and applicants 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 11, 2021) minus PPP loan amounts
- For those entities who began operations partially through 2019, you may elect (at your own discretion) to use either calculation 2 or calculation 3
Allowable Use of Funds
- 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
We would love for all restaurant owners to benefit from every opportunity available to them in these hard times. If you would like our assistance in determining your eligibility and/or preparing your application, please click the following link to select an available time to meet with our team: www.calendly.com/ongandcompany/relief
We’re here to help, so please don’t hesitate to contact our office at 913-451-0056 if you have any questions about this program and/or the application process.