The Small Business Administration (SBA) is preparing to launch a MAJOR grant opportunity for food & beverage establishments nation-wide. Below is a quick rundown on some important things to know about the program.
Visit the SBA’s website for comprehensive program details, guidance, and application.
Key Eligibility Requirements
Eligible entities include businesses where the public or patrons assemble for the primary purpose of being served food or drink. These may include:
Restaurants, food stands, food trucks, food carts, caterers, bars, saloons, lounges, taverns, snacks & non alcoholic beverage bars, bakeries, brewpubs, tasting rooms, taprooms, breweries, wineries, inns, and more.
To satisfy the statutory requirement for “place of business in which the public or patrons assemble for the primary purpose of being served food or drink,” an eligible entity must have at least 33% of gross receipts in on-site sales of food & beverage to the public.
The following entities are NOT eligible: non-profit organizations, publicly traded companies, businesses that have received or have application pending for the Shuttered Venues Operators Grant, and businesses that are permanently closed.
Businesses that opened during 2020, as well as businesses that have not yet opened for sales but incurred eligible expenses as of March 11, 2021 ARE encouraged to apply if otherwise eligible. Reporting accommodations will be made for lack of historic sales data in the application process & award calculation.
Full eligibility details can be found here.
The Award
The Restaurant Revitalization Fund (RRF) will provide eligible businesses with funding equal to their pandemic-related revenue loss up to $10 million per business, and no more than $5 million per physical location.
Loan amounts received through the Paycheck Protection Program (PPP) are subtracted from the RRF award amount in the payment calculations.
Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.
Allowable use of funds 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, and business operating expenses.
Full award details can be found here.
Application Process
Registration for the SBA application portal will open on Friday, April 30, 2021, at 9 am ET. Program application will open on Monday, May 3, 2021, at noon ET.
The program outlines an initial priority period for women, veteran, and/or socially and economically disadvantaged individuals. During the first 21 days, only those applications within these designated priority groups will be processed. However, the portal will be accepting applications from all eligible applicants starting Day 1: May 3, 2021 at noon ET. All applicants (regardless of their priority-status) are encouraged to submit their application as early as possible so that their application can be placed in the queue.
Funds are anticipated to go quickly, and to be distributed on first-come first serve basis.
All eligible businesses are encouraged to pre-register for their SBA portal account this Friday and begin preparing their documentation needs so that they may submit their application as early as possible.
Full details on documentation requirements and the application process can be found here.
Cover Photo Courtesy of Visit Frederick