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Long-awaited aid for restaurants is here: What’s in the new Restaurant Revitalization Fund?
A new grant program called the Restaurant Revitalization Fund (RRF) is slated to provide relief funding for restaurants and bars affected by the COVID-19 pandemic. The RRF, which was established by the newly passed American Rescue Plan, will provide $28.6 billion in grants for small businesses in need.
More information about the program should become available in the coming weeks. Below you will find preliminary details about the grant program and how your small business may benefit.
- Eligible businesses include food-service and drinking establishments like restaurants, bars, caterers, breweries, taprooms, and tasting rooms that are not part of an affiliated restaurant group with more than 20 locations.
- Eligible businesses cannot be publicly traded and there are limits on private equity firms.
- Eligible businesses are not able to receive a RRF grant if they are currently an applicant for the Shuttered Venues Operators (SVO) grant program.
- Grants can be spent on payroll and benefits up to $100,000 a year, mortgage, rent, utilities, maintenance, supplies (including PPE and cleaning products), food and beverages, supplier costs, operational expenses, and paid sick leave.
- Eligible restaurants can expect grants that match their pandemic-related revenue loss, calculated by taking their revenue in 2019 and subtracting 2020 revenue and any PPP loan funds received.
- The covered period is from February 15, 2020 through December 31, 2021.
- The grants can be taken alongside the two rounds of PPP, EIDL, and the Employee Retention Tax Credits, though any PPP loans already received will be subtracted from the eligible grant total for any individual business.
- The U.S. Small Business Administration (SBA) will administer the RRF grants program, but a launch date is still pending.
- The SBA is expected to prioritize grant applications from restaurants and bars owned by women, veterans and minorities during the first 21 days of the grant-making process.
Stay tuned for more information about the program and when applications may go live.