A $28.6 billion Restaurant Revitalization Fund is included in the $1.9 trillion economic stimulus bill signed last Friday by President Biden. Sean Kennedy of the National Restaurant Association estimates that US restaurants have lost about $250 billion in revenue during the pandemic, so these funds will go quickly. Kennedy and Neil Bradley of the US Chamber of Commerce provided details in a webinar on Friday afternoon.
This program will be administered by the SBA. The funds are grants and if used correctly do not have to be repaid. $5 billion of the program is set aside for restaurants with under $500,000 in annual gross revenue. There will be preferences for minority owned restaurants. Most restaurants will be eligible. Excluded are publicly traded companies and companies with more than 20 units. Franchisees may qualify.
The SBA has not published an application form and when they will be ready for applications has not been announced. What restaurant owners should do now is obtain a DUNS number. Google DUNS for information on how to apply. Once you have a DUNS number you can register at SAM.gov. Both will be required to apply for a grant. You can also begin to document your revenue in 2019 and 2020. The grant will be based on the revenue lost in 2020 compared to 2019. If you opened your restaurant during 2019 or 2020, you could still apply. Details will be forthcoming from the SBA.
If you received a PPP loan in 2020, that amount counts as revenue for the year. EIDL loans and Employee Retention Tax Credits do not count as revenue. You can take advantage of all these programs, but you cannot be reimbursed more than once for an e or revenue loss.
The definition of a restaurant is an establishment where people come primarily to eat or drink. Venues that have incidental food or beverages available will not qualify. Suppliers to restaurants will not qualify.
For more information from the National Restaurant Association, CLICK HERE to download a 2-page pdf with details as of March 9th.