The recently approved American Rescue Plan Act (ARPA) includes grant funding to support struggling restaurants and bars, with $28.6 billion in funding to replace lost revenue due to pandemic restrictions. It’s no surprise that restaurants were among the hardest-hit industries as lockdowns cut off revenue sources. Even as the food industry adjusted to expand delivery and takeout, business owners still struggle with cash flow concerns.
If you are the owner of a restaurant or bar, then you may qualify for a new grant program through ARPA known as the Restaurant Revitalization Fund (RRF). $5 billion of the grant money is set aside for small businesses and startups – restaurants with annual receipts of less than $500,000.
What You Need to Know About the Restaurant Revitalization Fund
Here are a few essential details you need to know about the available grant funding:
- Eligibility Requirements: These types of establishments are eligible to apply for grant money: “restaurant, food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting room, taproom, licensed facility or premise of a beverage alcohol producer where the public may taste, sample, or purchase products.” Exclusions include owners operating more than 20 restaurant locations, as well as publicly traded companies.
- How to Apply: These funds are dispersed through the Small Business Administration (SBA). You will need to use an application portal that launched this month (4/2021). Part of the application process includes submitting documentation showing how hard your business was hit by the pandemic, such as tax documentation and other documents showing gross receipts from 2020 compared to 2019.
- How Much is Available: Maximums are capped at $5 million for individual restaurants and $10 million for restaurant groups.
- How to Use Grant Funds: If you receive grant money, these funds can be used for specific expenses, including payroll costs, rent payments, mortgage payments, utilities, maintenance, supplies (cleaning materials and PPE), beverage and food inventory, paid sick leave, operational expenses, and any other costs that SBA agrees are essential for maintaining operations.
February 15, 2020 – December 31, 2021, is the covered period when the expenses must be incurred and paid for by the grant.
Assistance for Maximizing Available Grant Funding
Do you need help with accessing available grant money for your restaurant or bar? Our team at ReFOCUSed Business Consulting is here to assist. Our goal is to help your business thrive through custom solutions for business management, tax strategies, and full-service consulting.