Registration is now open and the application process will begin on May 3 for the Small Business Administration’s (SBA) Restaurant Revitalization Fund (RRF). The fund is designed to aid restaurants and other food & beverage establishments where PPP loans have not mitigated losses and financial issues.
The fund has $28.6 billion dollars to distribute and will continue accepting applications until the funds are exhausted.
MORE: Applications Still Open for Small Business Relief Grants
“Restaurants are the core of our neighborhoods and propel economic activity on main streets across the nation. They are among the businesses that have been hardest hit and need support to survive this pandemic. We want restaurants to know that help is here,” said Isabella Casillas Guzman, SBA administrator, in a press release. “The SBA has focused on the marketplace realities of our food and beverage businesses in designing the Restaurant Revitalization Fund to meet businesses where they are. And we are committed to equity to ensure our smaller and underserved businesses, which have suffered the most, can access this critical relief, recover and grow more resilient.”
This initiative is a part of the American Rescue Plan, signed into law by President Joe Biden on March 11, 2021. The funds must be used by March 11, 2023, and there are guidelines on both who can apply and how the funds can be expended.
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Restaurants, food trucks, caterers and other designations are included in the documentation for applicants. The SBA can allow up to $5 million dollars per location and no less than $1,000. Some of the designated expenditures are payroll, rent and debts incurred due to the economic hardship of the last year. Any money awarded is not due for repayment unless funds are used for unauthorized purposes.
“Recognizing the great urgency to help restaurants keep their doors open – and with a clear mandate from Congress – the SBA worked at a breakneck speed and is excited to launch this program,” said Patrick Kelley, SBA associate administrator for the Office of Capital Access, in a press release. “From day one, we engaged with diverse stakeholders in the food industry community to make sure we built and delivered the program equitably, quickly and efficiently.”
For the first 21 days of the program, the SBA has committed to prioritizing funding for businesses owned and controlled by women, veterans and socially and economically disadvantaged individuals. After that period, all applications will be handled first-come, first-served.
MORE: Local Augusta Area Banks Exceeded National Banks on Making PPP Loans
In addition, $9.5 billion of the funds are set aside for smaller businesses. Five billion is designated for businesses reporting fewer than $500,000 in gross receipts in 2019, $4 billion for businesses reporting $500,001 to $1,500,000 and $500 million for businesses reporting less than $50,000.
There are informational sessions taking place next week to inform business owners about the application process. Visit this website to browse the informational sessions and other relevant info.
Tyler Strong is the Business Editor for The Augusta Press. Reach him at tyler@theaugustapress.com.
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