Find out if your business is eligible for significant pandemic assistance via the Restaurant Revitalization Fund. Even if you’ve already received PPP loans or the claimed employee retention tax credit (ERTC), restaurants could still be eligible for thousands -or even up to $10 million- in pandemic relief from the Restaurant Revitalization Fund. MP’s HR services team shares more about this program, how much can be claimed, who is eligible, and how to apply.
What is the Restaurant Revitalization Fund?
This program for pandemic relief is run by the Small Business Administration (SBA) and worth $28.6 billion. Recipients will be getting government funded grants of up to $10 million total or $5 million per individual location. Funds may be spent on covered payroll, paid sick leave, on mortgage, rent, utilities, maintenance and supplies (PPE and other COVID-centric supplies included), food and beverages, as well as covered supplier and operational costs. The covered period these grants can be used for is February 15, 2020 through December 31, 2021. Employers can use these grants in addition to two rounds of PPP Loans, EIDL grants, and employee retention tax credits. (Note that any PPP loans already received will reduce the amount of the grant, though.)
Who is eligible for grants from the Restaurant Revitalization Fund?
To qualify for grants, applicants must:
- Have less than 20 locations
- Not be publicly traded
- Be able to prove they are in the foodservice or drinking establishment industries
- Be able to prove a loss of revenue over the past year
- Must not have a pending application for shuttered venue operators
How will funds be awarded?
- Funding will be affected by when the restaurant opened if it was 2019 or later. Funding will also be decreased by the amount of PPP loans received by the business.
- Restaurants or drinking establishments that opened 2018 or earlier: Subtract the 2020 revenue from 2019 revenue. Then subtract first and second-draw PPP loan funds.
- Restaurants or drinking establishments that opened 2019: Multiply the average of 2019 monthly revenue by 12. Subtract the average 2020 monthly revenues multiplied by 12. Then subtract first and second-draw PPP loans.
- Restaurants or drinking establishments that opened in 2020: Funding will be equal to “eligible expenses incurred,” with first and second-draw PPP loans subtracted.
- Restaurants that are not open yet can get “funding equal to eligible expenses incurred before the date of enactment.”
How do we apply to the Restaurant Revitalization Fund?
The SBA will be opening a portal for applications, likely within weeks of the March 12th date when it was signed into law. You can watch for that portal here. If you work with HR consulting from a company like MP, talk to them about staying updated on the Restaurant Revitalization Fund program. You can also check back with MP’s blog, social media, and webinars for more updates.
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