After a lot of talk and anticipation, a restaurant stimulus package is finally here. President Biden signed the $1.9T American Rescue Plan Act into law in March. Out of that, the law sets aside $28.6B for the Restaurant Revitalization Fund. These tax-free grants go to small businesses that have been negatively impacted by the pandemic. Priority has been given to restaurants owned by socially and economically disadvantaged groups.
So what do restaurants, and other foodservice businesses need to know before they apply?
What’s in the Restaurant Revitalization Fund?
Since COVID-19 started, the National Restaurant Association reports that 17% of restaurants closed. That totals more than 110K businesses overall. This stimulus will reverse some of the damages inflicted on the industry during this pandemic.
The Restaurant Revitalization Fund will distribute up to $10M per business and $5M for each individual venue. You’ll have to use the funds by March 2023, but they cover operational expenses like payroll, rent, utilities, and food and beverage costs. Even if your restaurant already received a PPP loan, you can still apply for these grants. They will, however, deduct the size of your loan from whatever you get from the Restaurant Revitalization Fund.
How to Apply
The Small Business Association, or SBA, will distribute these grants through their website. Applications opened on May 3rd. Restaurants can make an account and apply online here:
From there, fill out your information and upload your relevant documents proving eligibility. Check their list of required documents so that you’re set with tax forms and returns, Point of Sale reports, and everything else they need to process your application as quickly as possible.
As an alternative to applying online, you can sign up for the Restaurant Revitalization Fund through one of the SBA’s Restaurant Partners or even over the phone if you prefer.
Eligibility
The administration has committed to the prioritization of disenfranchised individuals. To this end, during the first three weeks after the Fund opens, the SBA will only give out grants to businesses that are majority-owned by women, veterans, and socially or economically disadvantaged groups. After that, the order will default back to chronological.
The amount of revenue you lost during the pandemic determines the size of your grant, which is why your sales reports will be necessary for determining the size of your need. For the most accurate sales data, get a smart Point of Sale system that tracks your average profit and simultaneously launches your restaurant into the modern experience that a post-COVID marketplace will expect.
