Restaurant Revitalization Fund: Economic Relief for Restaurants
On March 11, 2021, the American Rescue Plan Act (ARPA) became public law, establishing the Restaurant Revitalization Fund (RRF). The ARPA appropriated $28.6 billion for the U.S. Small Business Administration (SBA) to provide financial assistance to restaurants, bars, and other similar places of business that suffered revenue losses related to the COVID-19 pandemic.
Restaurant Revitalization Fund
The SBA is and will continue accepting applications for RRF funds subject to the availability of these funds. The appropriated funds will remain available until expended. Priority of the grants may be given to an applicant that is:
- A small business concern that is at least 51% owned by one or more individuals who are women, veterans, or socially and economically disadvantaged
- Managed or controlled by one or more women, veterans, or socially and economically disadvantaged individual
To be eligible for RRF funds, bakeries, brewpubs, tasting rooms, taprooms, breweries, microbreweries, wineries, and distilleries, must provide documentation with their applications that on-site sales comprised at least 33% of gross receipts in 2019. For businesses that opened in 2020 or that have not yet opened, the applicant’s original business model should contemplate that on-site sales to the public comprise at least 33% of gross receipts.
Economic Relief for Restaurants
The Restaurant Revitalization Fund provides an opportunity for eating establishments to procure much-needed financial relief due to the COVID-19 pandemic. But, as with many grant and aid programs, funds are limited and will be disbursed on a “first-come, first-served basis.”
The SBA began accepting applications for RRF funds on May 4, 2021. In the first week, over 16,000 grants were issued to eligible businesses, totaling $2 billion. As of May 12, 21,000 grants totaling $2.7 billion had been issued. Just ten days into applications being accepted for RRF funds, the SBA still has over 250,000 pending applications requesting $65 billion in aid. Therefore, as of now, more than $36 billion in applications from various businesses throughout the country will not receive funding. Lobbyists and activists throughout the country are already asking Congress to replenish the fund to allow for continued distributions to eligible businesses.
For all the details on eligible applicants, expenses, and amounts, read our full article here! If you have any questions about this post or any related matters, please feel free to contact us at firstname.lastname@example.org or email@example.com.
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