Get Up To $10 Million For Your COVID Impacted Restaurant or Food Truck
It is no secret the restaurant and food services industry has been severely impacted by the Covid-19 Pandemic.
Estimated to have taken a $280b blow, the government recently stepped in to help alleviate this financial hardship.
On Monday, the Small Business Administration’s Restaurant Revitalization Fund began accepting applications for $28.6b in grant money allocated for the Restaurant Revitalization Fund. This money comes as part of the $1.9t economic stimulus bill, called the American Rescue Plan, and signed into law on March 11th, 2021 by President Joe Biden.
Based on the size of your business, and the duration you have been operating, you could be eligible for a maximum of $10 million, and a minimum of $1,000. This money does not need to be paid back, as long as it is used on qualifying expenses by March 11, 2023.
Here are key highlights on the funding and how you can get free government money to help your business.
Am I eligible to apply for funding?
There are a few stipulations who will be eligible for the funding. Eligible businesses include:
- Food stands, food trucks, food carts
- Bars, saloons, lounges, taverns
- Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products
- Other similar places of business in which the public or patrons assemble for the primary purpose of being served food or drink
- Snack and nonalcoholic beverage bars
Bakeries, brewpubs, taprooms, breweries, wineries, distilleries, and Inns are also eligible but have additional eligibility requirements outlined in the Restaurant Revitalization Funding Program Guide.
Your company’s organization structure may also impact eligibility. C Corporations, S Corporations, Partnerships, LLC’s, Sole Proprietors, Self Employed Individuals, Independent contractors, and Tribal Businesses are all eligible organizations.
Your business may be ineligible if it:
- Has Permanently Closed
- Filed for Bankruptcy (**Approved plans may include Chapter 11, 12, or 13 Bankruptcy)
- Is a non-profit organization
- Received or applied for a grant by the Shuttered Venues Operators
- Have an expired EIN, SSN, or ITIN
When can I apply?
Applications are currently being accepted via the U.S. Small Business Administration (SBA) portal and through participating Point Of Sale vendors including Square, Toast, Clover, Oracle, and NCR Corporation. Applications will continue to be accepted until the funds have been exhausted.
The first 21 days of application period (May 3rd through May 23rd) are considered the Priority Period. During this time all eligible businesses may apply, however only applications submitted from “priority groups” will be processed.
Priority groups include small businesses owned by:
- Socially or Economically Disadvantaged Individuals
Upon completion of the priority period, all other applications will be processed in the order in which they are approved.
How Long Will It Take To Get Approved?
If your business falls within the priority groups mentioned above, your application could be processed in the first 21 days.
If you do not fall within that groups requirements, your application will be processed after the initial priority period in the order it has been received.
Ultimately the SBA states it could take up to 7 days to for the organization to review your application.
How Much Money Will I Get?
At a maximum you can receive up to $10 million, no more than $5 million per location, and a minimum of $1,000. Applications for less than $1,000 will be denied.
In order to calculate how much money you can receive, it depends on when your business began operating. Here are the 3 calculations the SBA will use:
Operating Start Date
On or before January 1, 2019
2019 Gross Receipts – 2020 Gross Receipts – Accepted PPP loans
Began Partially Through 2019
(Average 2019 Gross Receipts x 12) – 2020 Gross Receipts – Accepted PPP loans
On or between January 1, 2020 and March 10, 2021
& Applicants Not Yet Opened
(Amount Spent On Eligible Expenses between Feb 15, 2020 and March 11, 2021) – 2020 Gross Receipts – 2021 Gross Receipts (through March 11, 2021)
If your business began operating partially through 2019, you can choose to utilize either calculation 2 or 3, which ever has a higher benefit to you.
What Can I Use The Money On?
Once the funds have been received, you will be eligible to use them on various business expenses that include:
- Payroll expenses including sick leave
- Business mortgage payments
- Business rent payments; excludes repayment of past due rent
- Business Debt including both principal and interest
- Utility expenses
- Maintenance Expenses
- Construction costs related to outdoor seating
- Supplies that include protective equipment and cleaning materials
- Food and beverage expenses
- Raw materials
- Supplier costs
- Operating Expenses
This list covers nearly all business expenses we can think of!
If you have any questions that may not be covered in this article, we recommend reading the Restaurant Revitalization Funding Program Guide or visiting the U.S. Small Business Administration.
Best of luck to all who apply and we look forward to dining in person with you soon.