Soon, eligible businesses can take part in a Restaurant Revitalization Plan that aims to provide emergency assistance to eligible restaurants, bars and other qualifying businesses to keep their operations running.
The program, which is part of the American Rescue Plan Act of 2021 and administered by the US Small Business Administration, aims to provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. The minimum award is $1,000. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.
The application portal for this program is still being created, so the application period is not open yet.
The program will be open to all applicants and eligible entities who have experienced pandemic-related revenue loss, including restaurants food stands, food trucks, food carts, caterers, bars, saloons, lounges, taverns, snack and non-alcoholic beverage bars, bakeries (onsite sales to the public comprise at least 33% of gross receipts), brew pubs, 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) and kicensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products.
Women, veterans, or socially or economically disadvantaged people will be given priority if they own 51% of the business. According to the US SBA website, socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities. Economically disadvantaged individuals are those socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area who are not socially disadvantaged.
The Restaurant Revitalization 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 and business operating expenses.
Eligible applicants can apply SBA-recognized point of sale restaurant partners through the SBA online application portal or local SBA District Office.