Restaurant Revitalization Fund Application Phased Launch Opening Soon
The Restaurant Revitalization Fund grant program allows restaurants to apply for grants of up to $10 million based on lost revenue. SBA has set aside funds that are available only for certain applicants in underserved communities and will prioritize awarding funds for the first 21 days to small businesses at least 51 percent owned and controlled by individuals who are women, veterans, and/or socially and economically disadvantaged individuals. The application will then open to all eligible applicants.
The SBA is targeting a phased launch starting in late April 2021. Applicants can prepare now by completing the draft application SBA Form 3172 and gathering additional required documentation.
Eligible Fund Uses
The fund must be used for eligible uses during the covered period beginning February 15, 2020 and ending on March 11, 2023. Eligible expenses include:
- Business payroll costs, including sick leave and costs related to the continuation of group health care, life, disability, vision, or dental benefits during periods of paid sick, medical, or family leave, and group health care, life, disability, vision, or dental insurance premiums;
- Payments on any business mortgage obligation (both principal and interest; note: this does not include any prepayment of principal on a mortgage obligation);
- Business rent payments, including rent under a lease agreement (note: this does not include any prepayment of rent);
- Business debt service (both principal and interest; note: this does not include any prepayment of principal or interest);
- Business utility payments for the distribution of electricity, gas, water, telephone, or internet access, or any other utility that is used in the ordinary course of business for which service began before March 11, 2021.
- Business maintenance expenses including maintenance on walls, floors, deck surfaces, furniture, fixtures, and equipment;
- Construction of outdoor seating;
- Business supplies, including protective equipment and cleaning materials;
- Business food and beverage expenses, including raw materials for beer, wine, or spirits;
- Covered supplier costs, which is an expenditure made by the eligible entity to a supplier of goods for the supply of goods that:
- Are essential to the operations of the entity at the time at which the expenditure is made; and
- Is made pursuant to a contract, order, or purchase order in effect at any time before the receipt of Restaurant Revitalization funds; or With respect to perishable goods, a contract, order, or purchase order in effect before or at any time during the covered period;
- Business operating expenses, which are defined as business expenses incurred through normal business operations that are necessary and mandatory for the business (e.g. rent, equipment, supplies, inventory, accounting, training, legal, marketing, insurance, licenses, fees). Business operating expenses do not include expenses that occur outside of a company’s day-to-day activities.
The term “eligible entity” means 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.