Restaurant Revitalization Fund
The U.S. Small Business Administration (SBA) is awarding funding through the Restaurant Revitalization Program to restaurants, bars, and other similar places of business that serve food or drink. The purpose of this funding is to provide support to eligible entities that suffered revenue losses related to the COVID-19 pandemic.
On March 11, 2021, the American Rescue Plan Act (ARPA) became public law (P.L. 117-2). Section 5003 established the Restaurant Revitalization Fund (Fund) and appropriated $28.6 billion for SBA to award funds. These appropriations remain available until expended.
For additional detail regarding the Restaurant Revitalization Fund program, including without limitation, information regarding eligibility requirements, eligible use of funds, and calculation of funding amount, please click here.
This program will provide restaurants who meet eligibility requirements with funding equal to their pandemic-related revenue loss up to $5 million per physical location (not to exceed $10 million total for the applicant and any affiliated businesses). The minimum award is $1,000.
Fund recipients are not required to repay the funds as long as they are used for eligible uses no later than March 11, 2023.
Eligible entities are businesses that have experienced pandemic-related revenue loss, are not permanently closed, and include businesses where the public or patrons assemble for the primary purpose of being served food or drink including:
- 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
- *Brewpubs, tasting rooms, taprooms
- *Breweries and/or microbreweries
- *Wineries and distilleries
* Bakeries, brewpubs, tasting rooms, taprooms, breweries, microbreweries, wineries and distilleries: In order to be eligible, these businesses must provide documentation with their application that On-site Sales to the public comprised at least 33% of gross receipts in 2019. For businesses who opened in 2020 or that have not yet opened, the Applicant’s original business model should have contemplated at least 33% of gross receipts in on-site sales to the public.
** Inns: To be eligible, these businesses must provide documentation with their application that Onsite Sales of food and beverage to the public comprised at least 33% of gross receipts in 2019. For businesses who opened in 2020 or that have not yet opened, the Applicant’s original business model should have contemplated at least 33% of gross receipts in onsite food and beverage sales to the public.
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% in 2019 on-site sales to the public.
The original business model of eligible entities that opened in 2020 or that have not yet opened should have contemplated at least 33% of gross receipts in on-site sales to the public.
Those entities without additional documentation requirements, such as restaurants and bars, are presumed to have on-site sales to the public comprising at least 33% of gross receipts in 2019.
All applicants must attest in the application to the following “The Applicant is eligible to receive funding under the rules in effect at the time this application is submitted.”
Eligible entities include any of the above entities located in an airport terminal or that operate independently (i.e. has its own tax identification number) inside another business (e.g. a restaurant that operates independently inside a hotel or conference center) or that are a Tribally-owned concern.
To ensure that the smallest businesses and those in underserved communities receive funding awards, SBA has set-aside funds that are available only for certain applicants.
- $5 billion is set aside for Applicants with 2019 gross receipts of not more than $500,000.
- An additional $4 billion is set aside for Applicants with 2019 gross receipts from $500,001 to $1,500,000.
- An additional $500 million is set aside for Applicants with 2019 gross receipts of not more than $50,000.
The SBA reserves the right to reallocate these funds at the discretion of the Administrator.
Priority in Awarding Funds
SBA will prioritize awarding funds to small businesses at least 51 percent owned and controlled by individuals who are:
- women, or
- veterans, and/or
- socially and economically disadvantaged individuals (for definitions of terms see the Priority groups area of the When to Apply section of the SBA program site)
- Applicants in one of these categories that are operating under an approved plan of reorganization under either a Chapter 11, 12, or 13 bankruptcy and do not have a trustee exercising day-to-day control are eligible for funding under this program.
- Applicants must self-certify on the application that they meet the SBA’s priority requirements.
- SBA will consider an applicant to be eligible for priority in awarding funds if the Applicant is a small business that is at least 51 percent owned by one or more individuals who are women, veterans, or socially and economically disadvantaged and if the management and daily business operations of the applicant are controlled by one or more women, veterans, or socially and economically disadvantaged individual.
Schedule for Awarding Funds
Days 1 – 21:
SBA will accept applications from all eligible Applicants. During this period, SBA will distribute funds only for approved applications where the Applicant has self-certified that it meets the eligibility requirements for a small business concern at least 51 percent owned by women, veterans, or socially and economically disadvantaged individuals.
Days 22 – End of Program:
SBA will accept applications from all eligible Applicants and distribute funds in the order in which applications are approved by SBA.
Eligible Uses of Funds
Funds may be used for specific expenses including:
1. Business payroll costs (including sick leave) – see the SBA’s program guide available here for what are and are not deemed “payroll costs”
2. Payments on any business mortgage obligation
3. Business rent payments (note: this does not include prepayment of rent)
4. Business debt service (both principal and interest; note: this does not include any prepayment of principal or interest)
5. Business utility payments
6. Business maintenance expenses
7. Construction of outdoor seating
8. Business supplies (including protective equipment and cleaning materials)
9. Business food and beverage expenses (including raw materials)
10. Covered supplier costs
11. Business operating expenses
Timeframe for Using Funds
- Awardees must use all Restaurant Revitalization funds by March 11, 2023 on eligible expenses incurred beginning on February 15, 2020 and ending on March 11, 2023.
- If the business permanently closes, the covered period will end when the business permanently closes or on March 11, 2023, whichever occurs sooner.
Awardees that are unable to use all Restaurant Revitalization funds on eligible expenses by the end of the covered period must return any unused funds to the government (post award guidance to follow this guide).
Use of Funds Validation
- All Applicants have until March 11, 2023 to use award funds. Not later than December 31, 2021 all Applicants are required to report through the application portal how much of their award has been used against each eligible use category.
- If the Applicant fully expends their funds prior to December 31, 2021, they will be asked to certify in the application portal that proceeds have been used on eligible expenses.
- All Applicants that do not fully expend award funds prior to December 31, 2021 will be required to complete annual reporting submissions until they fully expend the award funding or the period of performance expires.
SBA reserves the right to request supplemental documentation needed to validate the certification.
Please review our application guide before applying:
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