Help is on the way for beleaguered restaurant owners who have been among the hardest hit business proprietors during the pandemic.
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:
- Food stands, food trucks, food carts
- 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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