What You Need To Know About The Restaurant Revitalization Fund Grant Program | Rosenberg Martin Greenberg LLP

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The American Rescue Plan Act of 2021, which came into force on March 11, 2021, contains relief for restaurants and similar businesses. The Small Business Administration (SBA) will administer the restaurant revitalization fund grant program. The grant amount is generally the excess of 2019 gross receipts over 2020 gross receipts.

Subject to additional guidelines, once a company receives the grant proceeds, it must use the proceeds for eligible expenses, but is not required to spend a minimum percentage of the grant proceeds on any specific type of eligible expense (e.g., payroll). . The SBA is expected to make applications available in the coming weeks. The provisions include the following:

  • Restaurants, bars, food stalls, food trucks and a range of other establishments are eligible.
  • However, the following are not eligible:
    • State or local government bodies
    • Listed companies
    • Companies with more than 20 locations (including affiliates) as of March 13, 2020; and
    • Companies that have received grants under Section 324 of the Economic Aid to Hard-hit Small Businesses, Nonprofits, and Venues Act (or for which applications are pending).
  • The “pandemic-related loss of revenue” corresponds to gross income in 2019 minus gross income in 2020.
    • Eligible restaurants can generally receive this amount as a grant (minus the PPP or EIDL loan amounts received).
    • Companies should apply as soon as possible as soon as applications are received.
    • This grant program has allocated $ 28.6 billion, including $ 5 billion for companies with gross sales of $ 500,000 or less and $ 23.6 billion for companies with gross sales greater than $ 500,000. dollar
    • Grants are capped at $ 10 million per company and $ 5 million per location.
  • Priority during the initial 21-day award period for Eligible Companies who (as certified by the Company):
    • Small businesses owned and controlled by women
    • Small Business Owned and Controlled by Veterans, and
    • socially and economically disadvantaged small businesses
  • The “Covered Period” is the period between February 15, 2020 and December 31, 2021
  • Eligible costs for grant proceeds include labor costs, rent (including leasing but unpaid rent), ancillary costs, upkeep (including outdoor seating and related redesign), consumables (including protective equipment), food and beverage expenses, and operating expenses
  • Other highlights:
    • This is a grant program, so no loan application or forgive application is required
    • Certification is still required:
      • the uncertainty of current economic conditions makes the grant application necessary to support the day-to-day running of the eligible entity; and
      • Eligible entity has not applied for or received a grant under Section 324 of the Economic Aid to Hard-hit Small Businesses, Nonprofits, and Venues Act (generally for live venue operators and certain related businesses)
    • No allocations are currently required for certain types of eligible expenses
    • SBA guidance will be important for more detailed content guidance, procedural guidance and forms, etc.
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