SBA to Launch Restaurant Revitalization Fund

Here’s what you need to know.

Source : Pixabay

April 18, 2021

Author : Alex Bustillos

The Small Business Administration (SBA) announced on Saturday application requirements and eligibility guidelines for the $28.6 billion Restaurant Revitalization Fund signed into law as part of the American Rescue Plan.

The SBA says the money will go to “the hardest-hit small restaurants.”

The SBA’s page on the program is available here and includes information on program details, supplemental documents, who can apply, how and when to apply, set asides, funding amounts, allowable uses of funds, and more.

Eligible businesses include: restaurants, food stands, food trucks, food carts, caterers, bars, saloons, lounges, taverns, snack and nonalcoholic beverage bars. 

Additionally, the following business types that have onsite sales comprising at least 33 percent of gross receipts will also be eligible: bakeries, brewpubs, tasting rooms, taprooms, breweries and/or microbreweries, wineries and distilleries, inns, and licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products.

There are three calculations that can determine the amount of funds your business may be eligible for, depending on dates of operation of your business. Those are viewable here.

According to the SBA, women and veteran-owned businesses, as well as other kinds of disadvantaged businesses, will take priority during the first 21 days of the program. Meanwhile, “$5 billion is set aside for applicants with 2019 gross receipts of not more than $500,000. An additional $4 billion is set-aside for applicants with 2019 gross receipts from $500,001 to $1,500,000.”

The new program is surely a welcomed development in the restaurant community.  As we have previously reported, one out of every six restaurants in the U.S. have closed down due to the coronavirus pandemic, while mom-and-pop restaurants have suffered the most.

While the application process has not started yet for the Restaurant Revitalization Fund, the SBA has released information on eligibility and application requirements to ensure a smooth rollout.

“Today, we are starting the process to help restaurants and bars across the country devastated by the pandemic, and this is our message: Help is here. With the launch of the Restaurant Revitalization Fund, we’re prioritizing funding to the hardest-hit small businesses – irreplaceable gathering places in our neighborhoods and communities that need a lifeline now to get back on their feet,” SBA Administrator Isabella Guzman said. “And, thanks to clear directives from Congress, we’re rolling out this program to make sure that these businesses can meet payroll, purchase supplies, and get what they need in place to transition to today’s COVID-restricted marketplace.”

“Local restaurants and bars are being served very good news today,” Erika Polmar, Executive Director of the Independent Restaurant Coalition, said. “These guidelines were crafted by the SBA after conversations with independent restaurant and bar operators across the country.

Photo via Pixabay.

Category : Disadvantaged Business Enterprises Minority Women Business Enterprises Small Business Enterprises Veteran Business Women Business Enterprises Coronavirus Pandemic Economic Stimulus Federal Government Small Business Administration

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