Restaurant Revitalization Fund
Posted on Wednesday, March 17, 2021
ShareRestaurants are getting industry specific support.
As part of the American Rescue Plan Act, $28.6 billion has been set aside as relief for eligible restaurant operators.
Who is eligible?
A restaurant, food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting room, taproom, licensed facility or premise of a beverage alcohol producer where the public may taste, sample, or purchase products, or other similar place of business in which the public or patrons assemble for the primary purpose of being served food or drink.
The applicant must also make a good faith certification that the uncertainty of current economic conditions makes the grant necessary to support its ongoing operations.
Who is not eligible?
State or local government-operated businesses, an entity as of March 13, 2020 who owns or operates more than 20 locations, an entity that has received a grant under the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, or is a publicly traded company.
Grant Amount
In general, the amount of grant is equal to the “pandemic-related” loss (2019 gross receipts less 2020 gross receipts) up to $10 million and are limited to $5 million per physical location.
Use of Funds
Grant funds may be used for the following expenses incurred as a result of the pandemic.
- Payroll costs
- Payments of principal or interest on any mortgage obligation (no prepayments allowed)
- Rent payments (no prepayments allowed)
- Utilities
- Maintenance expenses
- Supplies
- Food and beverage expenses
- Covered supplier costs
- Operational expenses
- Paid sick leave
- Any other expenses deemed essential
How to apply?
The grants will be administered by U.S. Small Business Administration (SBA). Applications are not yet available but during the initial 21-day period of the application period, priority will be given to small businesses owned and controlled by women or veterans or socially and economically disadvantaged small business concerns.
Contributed By: Casey Scheurich, CPA | Director | DWD CPAs & Advisors
Posted in Tax And Accounting Topics For Business
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