Help Is On the Way for Restaurant Owners

Help is on way for restaurant owners

Help is on the way for hard-hit restaurant owners.

Help is on the way for beleaguered restaurant owners who have been among the hardest hit business proprietors during the pandemic.

The Program

The help for restaurant owners comes via the Restaurant Revitalization Fund.  The American Rescue Plan Act, recently enacted by Congress, established the Restaurant Revitalization Fund with a balance of $28 billion to provide financial assistance to restaurants and other eligible businesses.  

The program, administered by the Small Business Administration (SBA), will 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.

Business owners are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.  In other words, if you play by the rules, it’s a grant, not a loan!

Businesses that received a PPP loan are still eligible.

Who Can Apply

Eligible entities that have experienced pandemic-related revenue loss include:

  • 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

The Application and Filing Instructions

Complete details on this financial help for restaurant owners can be found on this SBA website: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/restaurant-revitalization-fund?utm_medium=email&utm_source=govdelivery.

The SBA will begin accepting applications via the application portal on Monday, May 3. The application portal will remain open to any eligible establishment until all funds are exhausted. 

If We Can Help

Our firm specializes in business valuations, sales, mergers, and acquisitions.  If we can assist during these strange times, please don’t hesitate to call or email.  For our article on restaurant valuation, please click here.  

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William Bruce is an Accredited Business Intermediary (ABI) and Senior Valuation Analyst (SVA) assisting buyers and sellers of privately held businesses in the transfer of ownership.  He currently serves as president of the American Business Brokers Association.  His practice includes consulting services nationally on issues of business valuation and transfer.   With offices in Fairhope, Alabama and Baton Rouge, Louisiana, he may be reached at (251) 990-5934 (Fairhope), 225-465-5799 (Baton Rouge) or by email at Will@WilliamBruce.org. 

About William Bruce

President, American Business Brokers Association / Business Broker and Accredited Business Intermediary assisting business buyers and sellers with the transfer of ownership since 1986 / Author: How to Buy a Business.
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