Restaurants

The food industry was hit hard by the COVID-19 pandemic and local restrictions to stop the spread made it especially difficult for small businesses. As of May 3, 2021, food industry business owners that experienced a revenue loss can apply for the Restaurant Revitalization Fund through the Small Business Association.

What is it?

The SBA will be awarding a total of $28.6 billion to restaurants, bars, and other similar businesses that serve food or drink to help cover pandemic-related revenue loss. The fund is a part of the American Rescue Plan Act which was signed into law by President Joe Biden on March 11, 2021. Businesses may be awarded $1K – $5 million and will not need to repay it as long as the funds are used for eligible business expenses.

Who is eligible?

Eligible entities include:

  • Restaurants
  • Food stands, food trucks, food carts
  • Caterers
  • 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, tasting rooms, taprooms
  • Breweries and/or microbreweries
  • Wineries and distilleries
  • Inns

What can I use it on?

  • Eligible business expenses include:
  • Business payroll costs (including sick leave)
  • Payments on any business mortgage obligation
  • Business rent payments (note: this does not include prepayment of rent)
  • Business debt service (both principal and interest; note: this does not include any prepayment of principal or interest)
  • Business utility payments
  • Business maintenance expenses
  • Construction of outdoor seating
  • Business supplies (including protective equipment and cleaning materials)
  • Business food and beverage expenses (including raw materials)
  • Covered supplier costs
  • Business operating expenses

Where do I apply?

Business owners can apply here and see how much you are eligible for.
https://restaurants.sba.gov/requests/borrower/login/?next=/

Read more information about the program on the SBA.gov website.

 

 

Categories: Small Business Advice