According to the National Restaurant Association, more than 110,000 restaurants and bars closed for business in 2020. Some closures were temporary due to the pandemic, while others permanently exited the food and drinking entertainment scene. COVID-19 restrictions are slowly lifting, but there’s more work ahead. Although restaurants that are still open have found ways to adapt, the financial struggle continues. One government program – the Restaurant Revitalization Fund – may provide some financial assistance.
What Is the Restaurant Revitalization Fund?
It’s a program established by the American Rescue Plan Act (the “Act”) intended to provide much-needed money to restaurants and other food or beverage-related businesses. Under the Act, eligible applicants apply to the Small Business Administration (SBA) for money equal to their pandemic-related revenue losses.
Funds are capped at $10 million per business and $5 million per physical location. Also, recipients will not have to repay the money if used for eligible purposes by March 11, 2023.
But not all restaurants qualify for the Restaurant Revitalization Fund.
What Type of Businesses Are Eligible?
The food and beverage industry is not just about traditional, sit-down restaurants. The Restaurant Revitalization Fund is intended to cover the needs of a wide range of businesses, including:
- Restaurants
- Food stands, food trucks, food carts
- Caterers
- Bars, saloons, lounges, taverns
- Snack and nonalcoholic beverage bars
- Bakeries (onsite sales to the public comprise at least 33% of gross receipts)
- Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts)
- Breweries and/or microbreweries (onsite sales to the public comprise at least 33% of gross receipts)
- Wineries and distilleries (onsite sales to the public comprise at least 33% of gross receipts)
- Inns (onsite sales of food and beverage to the public comprise at least 33% of gross receipts)
- Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products
Businesses must provide documentation showing that their “onsite sales to the public comprise at least 33.00% of gross receipts for 2019.”
How Does a Business Apply for the Restaurant Revitalization Fund?
If you are interested in applying for this program, you can apply through:
An SBA-recognized Point of Sale (POS) vendor, or
The SBA’s online application portal.
The SBA offers guides and webinars to help people interested in applying for the program.
The Restaurant Revitalization Fund Can Help with Your Recovery
You might encounter other legal issues as your business recovers from the pandemic, including those related to contracts and commercial leases.
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.