Restaurant Revitalization Fund 

The American Rescue Plan Act established a $28.6 billion Restaurant Revitalization Fund within the SBA. 

A business may receive a tax-free federal grant equal to the amount of its revenue loss related to the pandemic. This is calculated by subtracting its 2020 gross receipts from its 2019 gross receipts.

If the business was not in operation for the entirety of 2019, the total is the difference between 12 times the average monthly gross receipts for 2019 and the average monthly gross receipts in 2020. If the business was not in operation until 2020, it can receive a grant equal to the amount of “eligible expenses” subtracted by its gross receipts received. If the business is not in operation as of the application date, but it has made “eligible expenses,” the grant would be made equal to those expenses.

Distribution

The SBA may adjust awards based on demand and local costs in the markets where your businesses operate. The SBA is able to award $23.6 billion in an equitable manner to businesses based on their annual gross receipts. For businesses with gross receipts of $500,000 or less during 2019, the left over $5 billion is available for them. The total grant amount is capped at $10 million and is limited to $5 million per physical location of the business.

Eligibility

Eligible expenses are those incurred from February 15, 2020 to December 31, 2021

Eligible Businesses

Eligible businesses include licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products. This includes a place of business in which the public or patrons assemble for the primary purpose of being served food or drink: 

• Restaurants 
• Food stands 
• Food trucks
• Food carts
• Caterers 
• Saloons
• Inns
• Taverns, Bars, Brewpubs, Tasting rooms, Taprooms, Lounges

Ineligible Businesses

• Publicly-traded companies

Expenses

Funds must be spent on: 

• Payroll
• Principal or interest on mortgage obligations
• Rent
• Utilities
• Maintenance including;
• Construction to accommodate outdoor seating
• Supplies such as protective equipment, cleaning materials
• Food and beverage inventory
• Operational expenses
• Paid sick leave

Tax Information

This grant will not be taxed like income. All normal federal tax deductions are protected.

Application

Interested businesses can begin registering for the grant application portal on Friday, April 30. The Small Business Administration will begin accepting applications May 3, 2021. Here is the sample application that will be replaced with an SBA portal in the next couple weeks.