Attention Restaurant Owners! The SBA has announced a new Restaurant Revitalization Fund (RRF) to help restaurants hit by the pandemic. The grant will help restaurants with payroll costs, mortgage or rent relief, utilities, maintenance expenses, food and beverage expenses, supplier costs, operational expenses and can cover extended periods of time from Feb. 15th, 2020 through Dec. 31st, 2021.
The SBA has announced that restaurant owners who seek to participate in the Restaurant Revitalization Fund will not need to sign up for a http://SAM.gov account or be required to have a DUNS number. More info to come.
The U.S. Small Business Administration (SBA) is targeting early April to launch a phased rollout of the $28.6 billion Restaurant Revitalization Fund (RRF), a senior SBA official testified during a Senate Small Business Committee hearing.
The American Rescue Plan Act, created the RRF to provide restaurants with grants equal to their pandemic-related revenue loss, up to $10 million per entity, or $5 million per physical location. Restaurants and bars have been among the hardest hit businesses during the COVID-19 pandemic, and members of the Senate Small Business Committee pushed for answers on how quickly the program could be launched.
Stay updated on all pandemic relief programs at https://www.sba.gov/funding-programs/loans/covid-19-relief-options.
Ideally the SBA, over the next seven to 10 days, would be able to begin posting RRF information such as guidance and required documentation relevant to potential applicants. The program would then move to a pilot phase, in which the program would begin accepting applications based on prioritization established in the American Rescue Plan Act, which sets aside $5 billion for the smallest applicants ($500,000 or less in 2019 gross receipts) and requires that during the first 21 days of the grants, the SBA will prioritize applications from restaurants owned and operated or controlled by women, veterans, or socially and economically disadvantaged individuals.
After the prioritization /pilot phase, grants would become available more broadly.
The grant funds may be used to pay for the following eligible expenses:
- Payroll costs.
- Principal and interest payments on a mortgage, not including any prepayments on principal.
- Rent payments, not including prepayments.
- Maintenance expenses including construction to accommodate outdoor seating and walls, floods, deck surfaces, furniture, fixtures, and equipment.
- Supplies including personal protective equipment and cleaning materials.
- Food and beverage expenses within the eligible entity’s scope of normal business practice before the covered period, which runs from Feb. 15, 2020, through Dec. 31, 2021, or another date as determined by the SBA.
- Covered supplier costs.
- Operational expenses.
- Paid sick leave; and
- Any other expenses the SBA determines to be essential to maintaining the eligible entity.
At Liberty Payroll & HR we are dedicated to helping employers deal with an ever-changing landscape regarding news and policy dictated by the unprecedented COVID-19 pandemic. If you are thinking of switching payroll companies, here is the why, the when, and the how.