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Congressional Federal Relief Packages

The following is a list of resources and vital information related to the Federal Government Coronavirus Response Efforts. This list of resource links will continue to be updated with new information as it becomes available.
 

Restaurant Revitalization Fund

The Small Business Administration (SBA) landing page for the Restaurant Revitalization Fund is LIVE. Note: This is NOT the application. This is the program website, program guide, and final sample application that will give you more details and insight about the application process.

The website contains details including: 

  • The Official Program Guide

  • Required documents you should gather NOW

  • Who can apply; What types of foodservice businesses

  • How to apply (there will be 3 options - through POS partners, directly via the SBA’s application, or via telephone)

  • When to apply (date still TBD)

  • Set asides

  • Funding amount

  • Allowable use of funds

  • How to get help with your application

CLICK HERE to view the SBA RRF landing page. 

CLICK HERE to download a PDF of the official program guide. 

A few new additional parts of the process were also shared by SBA: 

  • Ahead of the application launch and over the next two weeks, SBA will establish a 7-day pilot period for the application portal.  SBA and district offices across the country will conduct extensive outreach to small businesses interested in applying. 

  • The pilot period will be used to address technical issues ahead of the public launch. Participants will include #PaycheckProtection Program borrowers in RRF priority groups, who will not receive funds until the application portal is open to the public. 

  • Following the pilot, the application portal will open to the public. For the first 21 days, SBA will prioritize reviewing applications from small businesses owned by women, veterans, and socially and economically disadvantaged individuals. Following the 21-day period, all eligible applicants are encouraged to submit applications. 

National Restaurant Association: FAQ's Restaurant Revitalization Grant - April 9th, 2021

On Wednesday, March 10th, Congress passed the American Rescue Plan Act, which includes the $28.6 billion Restaurant Revitalization Fund, providing grants to small restaurants. President Biden is expected to sign it by Friday. This is a huge triumph as the restaurant industry has advocated for restaurant-specific relief since the onset of the pandemic. It took the voices and efforts of many at the national, state, and local levels to reach this point and provide restaurant-specific support. Here is a quick guide from the National Restaurant Association on what’s included in the RRF. 

Here are the key details of the legislation and how it directly impacts restaurants. 

Restaurant Revitalization Fund

  • The total fund is $28.6 billion, of which $5 billion of these funds are reserved for restaurants that had revenues of less than $500,000 in 2019.

  • Restaurants (including food trucks, caterers, and tasting rooms) with no more than 20 locations and that have suffered economic losses on account of the pandemic are eligible for grants.

  • The grants will be equal to the decrease in revenues from 2019 to 2020 (maximum: $10,000,000).

  • Expands eligible expenses from what was allowed under the second draw of PPP to also now include: food and beverage inventory, debt obligations to vendors, and sick leave.

  • The fastest timeline ends with restaurants applying in May/June with SBA guidance coming in April/May. SBA guidance is going to be very important. 

  • The first 21 days that the application is open will only be for priority groups that includes: women, veterans or socially/economically disadvantaged small business concerns. 

  • Grant amounts are reduced by any PPP or EIDL loans received in 2020 or 2021.

  • How to calculate grant amount (this will likely also be subject to guidance from the SBA): 

    • Tax-free federal grant equal to the amount of its pandemic-related revenue loss, calculated by subtracting its 2020 gross receipts from its 2019 gross receipts. 

    • If the business is 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 (or a formula from SBA).

    • If the business is not in operation until 2020, it can receive a grant equal to the amount of “eligible expenses” subtracted by its gross receipts received (or a formula from SBA).

    • If the business is not yet in operation as of the application date, but it has made “eligible expenses,” the grant would be made equal to those expenses (or a formula from SBA).

As soon as we have further insight on the SBA guidance for the RRF on how operators can apply, we will provide that detail so that you can respond quickly and benefit from this relief. 

Resources: click here for a first take on the legislation from our Industry Partner CPA Eats, and some key areas that may benefit your business or you as an individual. 

In addition to the Restaurant Revitalization Fund, here are some key elements of the American Rescue Plan to know about that benefit many individuals.  

  • Individuals earning up to $75,000 and couples earning up to $150,000 would receive the full direct payments of $1,400 per person. Individuals will also receive an additional $1,400 payment for each dependent claimed on their tax returns.

  • Federal unemployment insurance payments will remain at $300 per week through 9/6

  • More funding for PPP. However, the legislation did not extend the deadline for PPP Second Draw, which is still March 31. 

Other Resources

SMALL BUSINESS ADMINISTRATION

Small Business Administration loans are available for DC, Maryland and Virginia small businesses. The SBA will provide targeted, low-interest loans to small businesses and non-profits that have been severely impacted by the Coronavirus (COVID-19). The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic  support to small businesses to help overcome the temporary loss of revenue they are experiencing. All restaurants are encouraged to apply today.

National Coronavirus Updates

CONTACT RAMW

If you have questions regarding any of the above topics or anything else, please email coronavirus@ramw.org, as this will help ensure you receive a timely response on your pressing issue. To reach out to a specific team member, please click here for our staff directory.