Food service establishments – including bars, restaurants, food trucks, breweries, bakeries and wineries – can begin applying for $ 28.6 billion in forgivable loans as of Monday.
Businesses can claim up to $ 10 million with funding made available through the American Rescue Plan. Pre-registration is currently available on the Small Business Association’s website and applications can begin to be submitted Monday at noon.
The US bailout established the Restaurant Revitalization Fund to help restaurants and other foodservice-related businesses stay open after the economic hardships endured during the COVID-19 pandemic.
The program will provide businesses with funding equal to their lost revenue from the pandemic of up to $ 10 million per business and no more than $ 5 million per physical location.
Recipients are not required to repay funding until funds are used for qualifying uses by March 11, 2023. Uses include commercial mortgage expenses, rent payments, construction of outdoor seating, or purchase. masks and other safety equipment.
Businesses can apply through a Small Business Association recognized point-of-sale catering partner or directly online when the program launches in the coming weeks. The SBA will establish a web portal for all applications.
An example of application can be found here.
The program includes $ 5 billion for applicants whose gross receipts in 2019 do not exceed $ 500,000. An additional $ 4 billion is set aside for applicants with 2019 gross receipts between $ 500,001 and $ 1,500,000. Another $ 500 million is set aside for applicants whose gross receipts for 2019 do not exceed $ 50,000.
Program funding cannot exceed $ 10 million in total and $ 5 million per location. The minimum reward is $ 1,000.
For applicants opened before January 1, 2019, the payment calculation is 2019 gross receipts minus 2020 gross receipts minus Paycheck Protection Program loan amounts.
For businesses that only partially operated in 2019, the payment calculation is the 2019 average monthly gross revenue multiplied by 12, then subtract the 2020 gross revenue and PPP loan amounts.
For businesses that started their activities between January 1, 2020 and March 10, 2021 or applicants who have not yet opened but have incurred eligible expenses, the calculation is the amount spent on eligible expenses between February 15, 2020 and March 11, 2021 minus 2020 gross revenue minus PPP loan amounts.
The first 21 days of the program will be dedicated to âpriorityâ companies. After the 21 day period, all eligible applicants are encouraged to submit applications.
Priority companies are defined as companies owned at least 51% by one or more people who are women, veterans or socially and economically disadvantaged people. The SBA defines socially disadvantaged people as people who have been victims of racial or ethnic or cultural prejudice.
The SBA defines economically disadvantaged people as those whose ability to compete in the free enterprise system has been diminished due to diminished capital and credit opportunities relative to others in the same industry who are not socially disadvantaged.