Restaurant operators can apply on Monday for federal grants of up to $10 million from the Restaurant Revitalization Fund, the U.S. Small Business Administration (SBA) announced Tuesday.
Applications will continue to be accepted until the $28.6 billion allocated for the program are exhausted, the SBA said. Operators can register for grants ahead of time beginning this Friday, April 30 at 9 a.m. EST.. Restaurants can register with the SBA here in advance of submitting an application.
The agency had previously revealed that priority will be given for the first 21 days of the application process to businesses that are at least 51% owned by women, veterans and what “socially and economically disadvantaged individuals.”
After that three-week period, all restaurants can apply for the grants. Under the program, a restaurant can apply for up to $5 million per location or $10 million in total for multi-unit operations.
The money can be spent on most normal restaurant operating expenses, including rent, payroll, food supplies and non-alcoholic beverages. The funds must be used before March 11, 2023.
The eligibility amount is determined by subtracting a business’ 2020 revenues from the figures for 2019. Paycheck Protection Program funds are also subtracted from the 2019 base figure. A slightly different formula is used for restaurants that opened during 2019 or after the first quarter of 2020.
The SBA suggests that in preparation for the applications opening, operators should prepare the following:
- Register for an account on restaurants.sba.gov starting April 30.
- Review the program guide and sample application
- Prepare the required documents, including tax identification numbers and banking information, ownership information, how much you received for first and second-draw PPP loans, and gross receipts. You can read more about acceptable forms of gross receipts here.
- Work with your POS vendor or submit the application directly through the portal when it opens on Monday.
- Attend one of three live application guidance webinars led by the SBA on April 27 at 2:30 pm EST, April 28 at 1 pm EST, or April 28 at 2:30 pm EST
The SBA has confirmed that funds will be given out on a first-come, first-serve basis and that likely demand will supersede available funds.
The Restaurant Revitalization Fund was created as part of the American Rescue Plan specifically to help restaurants, one of the industries that were most impacted by the pandemic.
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