• Urban Biz Media

Restaurant Revitalization Fund

Updated: 3 days ago

The SBA has just shared the Restaurant Revitalization Fund press release and to prevent misinformation, we took verbatim highlights from this announcement and have included some of the pieces that stuck out to us the most. For more information and how/when to apply, click the links down below. We've been informed it will continue to roll out over time, so be sure to follow the link to receive email updates so you don't miss anything! This is currently focused strongly on minority-owned small businesses as they are urged to apply if facing financial struggles with your restaurant since the pandemic hit. Read on for more info from this announcement-


UPDATE 5/1/21- If you received the following message: “Your application failed the Knowledge Based Authentication (KBA) Validation",your place in line is reserved and you will be able to complete your application shortly. Knowledge Based Authentication Validation is required as part of the docusign ceremony at the end of the application, and due to the high volume of applications at this stage, Lexis Nexis is currently unable to process the level of volume and we are working with them to resolve momentarily.



To help bring jobs back and revive the industry, the American Rescue Plan, signed into law by President Joe Biden, established the $28.6 billion Restaurant Revitalization Fund at the U.S. Small Business Administration. The SBA will administer the funds to the hardest-hit small restaurants.


“Today, we are starting the process to help restaurants and bars across the country

devastated by the pandemic, and this is our message: Help is here. With the launch of the

Restaurant Revitalization Fund, we’re prioritizing funding to the hardest-hit small businesses

– irreplaceable gathering places in our neighborhoods and communities that need a lifeline

now to get back on their feet,” -SBA Administrator Isabella Casillas Guzman. “And, thanks to clear directives from Congress, we’re rolling out this program to make sure that these

businesses can meet payroll, purchase supplies, and get what they need in place to transition to today’s COVID-restricted marketplace.”


The American Rescue Plan Act established the Restaurant Revitalization Fund (RRF) to provide funding to help restaurants and other eligible businesses keep their doors open. This program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.


Eligible entities who have experienced pandemic-related revenue loss include:

  • Restaurants

  • Food stands, food trucks, food carts

  • Caterers

  • Bars, saloons, lounges, taverns

  • Snack and nonalcoholic beverage bars

  • Bakeries (onsite sales to the public comprise at least 33% of gross receipts)

  • Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts)

  • Breweries and/or microbreweries (onsite sales to the public comprise at least 33% of gross receipts)

  • Wineries and distilleries (onsite sales to the public comprise at least 33% of gross receipts)

  • Inns (onsite sales of food and beverage to the public comprise at least 33% of gross receipts)

  • Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products


Funds may be used for specific expenses including:

  • 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

  • Business operating expenses

Participants in this pilot will be randomly selected from existing PPP borrowers in priority

groups for RRF and will not receive funds until the application portal is open to the public. 

 

Following the pilot, the application portal will be opened to the public. The official

application launch date will be announced at a later date. For the first 21 days that the

program is open, the SBA will prioritize reviewing applications from small businesses owned

by women, veterans, and socially and economically disadvantaged individuals. Following the

21-day period, all eligible applicants are encouraged to submit applications.

The groundwork for this announcement is the result of a comprehensive effort to reach out to

diverse stakeholders in order to understand the needs and barriers restaurants face


“Local restaurants and bars are being served very good news today,” said Erika Polmar,

Executive Director of the Independent Restaurant Coalition. “These guidelines were crafted

by the SBA after conversations with independent restaurant and bar operators across the

country. We are grateful to the SBA for their hard work to make this process as accessible as

possible in a short period of time.  It is clear the SBA and the Biden Administration care deeply about ensuring businesses struggling the most can quickly and effectively use this relief program, and we look forward to continued conversations and collaboration to ensure this fund works as intended for the independent restaurant and bar community.”


“In addition to historically having less operating liquidity and revenue than almost any other

small business demographic, Black-owned restaurants received significantly less stimulus

funding during the COVID-19 pandemic, heightening challenges and leading to

disproportionate closures,” said Ron Busby, Sr., president and CEO, U.S. Black Chambers, Inc.

“The USBC believes this initiative and collaboration with the SBA will bring needed resources

and relief to these often underserved businesses to aid in stabilization, recovery and

ultimately, strengthen our economy.”


In addition to restaurant groups and leading advocacy groups for underserved business

communities, the SBA has engaged national and state trade associations, and other small

business stakeholders in recent weeks to understand their concerns about relief programs.


“Small and independent craft breweries are vibrant community gathering places that can be

found in nearly every congressional district in the U.S. and contribute to manufacturing,

hospitality, retail, tourism, and agricultural industries,” said Bob Pease, president and CEO,

Brewers Association. “We are pleased to work with the SBA to promote the Restaurant

Revitalization Fund landing page and its available resources, and assist the breweries hit

hardest by COVID-19 secure much needed additional relief to help them survive the pandemic and prepare for the restart of the economy.”https://tinyurl.com/SeattleRRF


For more information you can go here

or sign up for email updates here


There will be webinars with helpful tips provided, see info below for dates and times.



5 views0 comments

Recent Posts

See All