20 Apr Restaurant Revitalization Grants Open Up (04-20-21)
The SBA has updated its website to provide additional information and guidelines regarding Restaurant Revitalization Grants. The grant amount is generally based on the amount of loss a restaurant incurred between 2019 and 2020, less any PPP loans received. These grants are excluded from gross income on the federal return.
An online application portal is available on the SBA’s website (http://restaurants.sba.gov/), but it has not yet been activated and to date the SBA has not stated when the portal will open.
Here are some key takeaways from the guidelines and program information provided on the SBA’s website:
- Applicants may apply:
- Through recognized SBA restaurant partners (certain tech companies that provide support to the restaurant industry, e.g., POS and other back office services);
- Using the SBA’s online portal (not yet open); or
- By calling the SBA at (844) 279-8898 (only for use by those who do not have internet access).
- Any grants provided must be used by March 11, 2023;
- Although bakeries, brewpubs, tasting rooms, taprooms, breweries, wineries, distilleries, and inns are eligible for the grants, they must be able to document that at least 33% of their 2019 gross receipts were attributable to on-site sales to the public (if not open in 2019, the business model must contemplate 33% of on-site sales);
- The following businesses are ineligible:
- Permanently closed restaurants;
- Businesses that have filed a Chapter 11, 12, or 13 bankruptcy and are not operating;
- Businesses that have filed a Chapter 7 bankruptcy;
- Businesses that as of March 13, 2020, own or operate (together with any affiliated business) more than 20 locations, regardless of name or type of business at those locations;
- Businesses that received a shuttered venues operators grant or who have a pending application for a shuttered venues operators grant;
- Nonprofit organizations;
- All publicly traded companies; and
- Businesses applying for less than $1,000 in grants or more than $5 million per location;
- Restaurants opening soon are eligible as long as they have incurred expenses as of March 11, 2021;
- Applications will take about 14 days to process; and
- During the first 21 days of the program, funds will only be distributed to those businesses who are majority owned by women, veterans, or socially and economically disadvantaged individuals.
A sample application is available here:
www.sba.gov/sites/default/files/2021-04/SBA%20Form%203172%20RRF%20Application%204.20.21-508.pdf
The SBA’s Restaurant Revitalization Funding Program guide is available here:
Additional program information is available at: