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SBA Reveals Initial Results of the Restaurant Revitalization Fund

by
Julie Farless
on
5/10/2021
SBA Reveals Initial Results of the Restaurant Revitalization Fund

The economic damage suffered by American businesses as a result of COVID-19 is almost impossible to assess, but one thing that is clear is that restaurants, bars, and other food and beverage operations were among the hardest hit. In response to the economic devastation done to these businesses, congress approved a $28.6 billion Restaurant Revitalization Fund (RRF) that provides grants of up to $10 million per business (no more than $5 million per individual physical location) to compensate for pandemic-related revenue losses. The grant money can be used for specific eligible expenses such as payroll and rent and is being administered through the U.S. Small Business Administration (SBA), which reports that in the two days following the May 3rd opening of applications, more than 186,000 applications were received.

In recognition of the significant impact that the pandemic had, eligibility includes a diverse range of businesses. Grant applications are being accepted from the following food and beverage businesses:

  • Bars, saloons, lounges, and taverns
  • Restaurants
  • Caterers
  • Inns at which on-site sales of food and beverages to the public comprise at least 33% of gross receipts
  • Food stands, food trucks, and food carts
  • Bakeries, brewpubs, tasting rooms, taprooms, breweries, microbreweries, wineries, and distilleries at which on-site sales to the public comprise at least 33% of the gross receipts
  • Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products.
  • Snack and nonalcoholic beverage bars

The RRF program mandates that small businesses owned by women, veterans, and socially and economically disadvantaged individuals be prioritized for consideration for the first three weeks, after which applications will be reviewed and, if approved, grant money distributed on a first come, first-served basis, with the SBA indicating that once an application’s process of review begins, approval and disbursement of those that are approved will take 14 days.

In its report on the applications received in the first few days of eligibility, SBA data revealed that approximately half came from those priority categories. Other reported data on applications included:

  • The applications received came from all over the country, including restaurants, bars, and other food and beverage organizations from Washington, D.C., all 50 states, and five U.S. territories.
  • Roughly one third (61,700) of businesses submitting applications reported having revenue before the pandemic of less than $500,000 per year.
  • Of the nearly half (97,700) applications received, 46,400 were from women owned and controlled businesses; 30,800 were from businesses owned and controlled by socially and economically disadvantaged individuals; 4,200 were businesses owned and controlled by veterans; and 16,200 reflected a combination of some of these categories.

If you have questions about the RRF or need help with your application, contact your business accountant.

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Julie Farless

Julie Farless

Martinez & Shanken, PLLC is a Certified Public Accountant (CPA) firm based in Gilbert, Arizona. We provide a full range of accounting, bookkeeping, consulting, outsourcing and business services, but we specialize in tax preparation. We work with you to ensure that your personal or business processes are conducted in a manner that ensures ongoing integrity in your financial transactions. We are available to answer your questions and help with your ongoing tax planning and changing business needs.

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