Nearly 6 weeks after the American Rescue Plan was signed into law, the Restaurant Revitalization Fund is a reality. The fund sets aside $28.6 billion in grants for restaurants to use to cover everything from payroll to rent. The Small Business Administration has announced that grants will open on Monday, May 3 at noon EST. Restaurateurs and operators can begin the application process on Friday, April 30 at 9 AM EST. The application will remain open until funding runs out.
For more information about eligibility, how much you can get, and what the money can be used for, read our previous post: What the American Rescue Plan Means for Your Restaurant
How do I apply?
Applications open on Friday, April 30 at 9 AM EST. Here's what to prepare beforehand:
Set your alarms and make sure you're ready, as it's expected that the demand will outweigh the supply of funds.
What do I need?
The SBA suggests the following to prep ahead of applications opening:
- Verification for Tax Information: IRS Form 4506-T, completed and signed by Applicant.
- Gross Receipts Documentation: Any of the following documents demonstrating gross receipts and, if applicable, eligible expenses
- Business tax returns (IRS Form 1120 or IRS 1120-S)
- IRS Forms 1040 Schedule C; IRS Forms 1040 Schedule F
- For a partnership: partnership's IRS Form 1065 (including K-1s)
- Bank statements
- Externally or internally prepared financial statements such as Income Statements or Profit and Loss Statements
- Point of sale report(s), including IRS Form 1099-K
Work with your POS partner to see how they can assist in getting the applications sent as soon as possible.
For applicants that are a brewpub, tasting room, taproom, brewery, winery, distillery, or bakery:
- Documents evidencing that onsite sales to the public comprise at least 33.00% of gross receipts for 2019, which may include Tax and Trade Bureau (TTB) Forms 5130.9 or TTB. (Note for businesses who opened in 2020: the Applicant's original business model should have contemplated at least 33.00% of gross receipts in onsite sales to the public.)
Who is eligible to receive grants?
Any establishment that serves food or beverages to guests is eligible. This includes:
- Food trucks, carts, or stands
- Bars and lounges
- Pubs and Taverns
- Breweries or wineries with a tasting room
Who is not eligible?
- Any publicly traded company
- Establishments that are permanently closed
- Businesses that have filed Chapter 7 bankruptcy
- A business or group with more than 20 locations
- A business with a pending application under the Save Our Stages program
What can I use the funds for?
You can use the funds to cover expenses incurred from February 15, 2020 until March 11, 2023.Expenses eligible for grant money to be used on are:
For the first 21 days beginning when funds are awarded, grants will be prioritized for small businesses owned by women or veterans, as well as businesses in economically disadvantaged areas. All applicants should still register as soon as possible to secure the best chance at receiving funds.
If you're unsure of anything, check out the SBA's program guide for more information. If you're able to secure funds, let us know what you plan to use them for and how they'll impact your business.
The information contained in this content is general in nature and businesses should consider whether the information is appropriate to their needs. Legal and other matters referred to in this article are based on 7shifts' interpretation of laws existing at the time and should not be relied on in place of professional legal advice. 7shifts is not responsible for the content of any site owned by a third party that may be linked to this article and no warranty is made by 7shifts concerning the suitability, accuracy or timeliness of the content of any site that may be linked to this article. 7shifts disclaims all liability (except for any liability which by law cannot be excluded) for any error, inaccuracy, or omission from the information contained in this article and any loss or damage suffered by any person directly or indirectly through relying on the information contained in this content.
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