Updated on 4/7/2021 to reflect the extension date of available Paycheck Protection Program (PPP) funding.
Updated 4/27/2021 to include Restaurant Revitalization Fund FAQ, application enrollment dates/required documents, and where to apply.
Updated 6/07/2021, adding a resource for tracking RRF expenditures.
Updated 8/28/2021 with information regarding increased funding available through the COVID-19 EIDL program.
Recently approved government funding is poised to revitalize the restaurant industry while many operators and their employees continue to feel the impacts of the COVID-19 pandemic.
RESTAURANT REVITALIZATION FUND SUMMARY
Congress has successfully passed the American Rescue Plan Act, known as the ARP Act, which was signed into law by President Biden. The Restaurant Revitalization Fund (RRF), contained within the ARP, is meant to provide 28.6 billion dollars in grants to eligible restaurants, bars, and food trucks.
The passage of this funding plan will help alleviate the stress felt by many in the restaurant industry who are struggling. Each qualifying applicant will be entitled to grant funding of up to $10 million. Restaurant franchises will be eligible for assistance through the ARP Act. However, companies that are publicly traded or exceed twenty units will not be considered.
The Small Business Administration (SBA) will be responsible for the allocation of these funds. In the first three weeks of disbursement, the SBA will prioritize applicants classified as small businesses and those that earn less than $500,000 in gross receipts in 2019.
The ARP Act will also give priority status to marginalized and underrepresented communities, such as minorities, women, and veterans.
APPROVED USES OF FUNDING
Under this act, which can be viewed in full on Congress.gov, operators can utilize grant funding for many different applications.
Funds can be used to cover mortgage payments and help those facing struggles due to back rent. Other approved usages include maintenance expenses, construction of outdoor seating, and the purchase of equipment. Dedicated funding is also meant to encourage the acquisition of necessary protective gear specified by the CDC and local health agencies.
In addition, eligible recipients can apply for ten days of paid sick leave for each company employee. Within the American Rescue Plan Act, $7.25 billion is allocated to continuing the Paycheck Protection Program (PPP), which is now available through May 31st, 2021.
APPLYING FOR THE GRANT
The Small Business Association announced that on Friday, April 30th, 2021 the registration for the SBA application portal will begin, applications will open on Monday, May 3. Restaurant owners wishing to apply for grant funding through the RRF will need their 2019 and 2020 revenue, the amount of any PPP funding received, and other important documents listed on the SBA website.
This easy-to-use tracking tool will help track expenses required of the SBA’s validation process for RRF expenditures.
Restaurant operators should know that applications will be submitted directly through the SBA portal instead of being submitted by banks. The National Restaurant Association has produced an informative guide to assist in the application process.
OTHER SBA PROGRAMS
For restaurants that could not receive RRF funding, the Small Business Administration recently adjusted the Economic Injury Disaster Loan (EIDL) program, increasing the limit on individual business loans from $500,000 to $2 million. In addition to the expanded funding, the program also loosens the restrictions on how grant money can be spent.
If you apply before Oct. 8, COVID-19 EIDL loan approvals will max out at $500,000. Restauranteurs seeking grant requests above $500,000 can still apply before then. However, the loans will not be approved before Oct. 8.
Restaurant operators are encouraged to apply as soon as possible. The deadline for EDIL funding distribution is Dec. 31, 2021, or whenever the allocated funds are depleted.
FINAL THOUGHTS
Menufy remains hopeful for the prospects that the Restaurant Revitalization Fund brings to the table. In the meantime, suggestions on how to grow your business during the pandemic can be found on our blog.
ABOUT THE AUTHOR
Melissa Dimmitt, Marketing Communications Coordinator
Melissa began her digital marketing career nearly a decade ago at a restaurant group. She worked with restaurant managers and executive chefs while coordinating seasonal menu releases, executing photoshoots, and creating fresh digital content.