Portal is open for $28.6B Restaurant Revitalization Fund Grants
As part of the American Rescue Plan, Congress approved a $28.6 billion Restaurant Revitalization Fund (RRF), which provides federal grants to eligible foodservice and drinking establishments like restaurants, bars, caterers, breweries, taprooms, and tasting rooms. The RRF is administered by the U.S. Small Business Administration (SBA). The RRF provides debt-free grants with funding equal to pandemic-related revenue lost in 2019 and 2020 up to $10 million per business and no more than $5 million per physical location. Grant funds must be used on eligible expenses incurred starting on February 15, 2020 and ending on March 11, 2023. (Read McDonald Hopkins’ summary of the RRF program by clicking here.)
The RRF opened its portal on Monday, May 3, 2021. According to recent reports, many financially distressed applicants are seeking grants. The White House released a fact sheet that said in its first two days 186,200 restaurants, bars, and other eligible businesses across the country applied for RRF relief. For the first three weeks, small businesses owned by women, veterans and the socially and economically disadvantaged have priority in application processing. According to the White House, 97,600 applications were received from eligible businesses in these groups. Also, more than 61,000 applications were made by businesses with less than $500,000 in annual pre-pandemic revenue, meaning some of the smallest restaurants and bars in America are seeking relief.
Franchise businesses are eligible to apply for these grants, but your franchise brand must be included on the SBA’s Franchise Directory before applying. Please note that if your brand was included on the SBA’s Franchise Directory as a temporary measure for Paycheck Protection Program eligibility, it must reapply or ensure permanent listing on the Directory for RRF eligibility. The SBA may request or require brands to complete and submit an Addendum to the Franchise Agreement before including the brand on the Franchise Directory.
Helpful links to information from the SBA’s RRF website Restaurant Revitalization Fund (sba.gov) are listed below.
