A $ 28.6 billion grant fund for restaurants, bars, caterers and other food businesses will open Monday, the government said Tuesday, providing an extra lifeline to some of America’s hardest hit small businesses.
The Restaurant Revitalization Fund, launched last month by the US $ 1.9 trillion rescue plan, will offer grants of up to $ 10 million to replace lost sales. The amount any business can receive is generally the difference between 2019 and 2020 gross earnings minus certain other federal aids such as paycheck protection program loans.
The money is expected to go quickly. Eligible companies have lost hundreds of billions of dollars, according to Congress estimates, but lawmakers have allocated funds to cover only a fraction of that amount.
“Restaurants are at the heart of our neighborhoods and are the driving force behind business on major highways across the country,” said Isabella Casillas Guzman, the head of the Small Business Administration that will pay out the grants. “They are among the hardest hit companies and need support to weather this pandemic. We want restaurants to know that help is here. “
All eligible companies can apply from Monday. However, for the first 21 days, the Small Business Administration will only approve claims from companies that are majority owned by people who fall into one of the priority groups set by Congress: women, veterans, and people who are socially and economically disadvantaged. The agency said the latter group includes those who meet certain income and wealth limits and are Black, Hispanic, Native American, Asian-Pacific American, or South Asian American.
Applicants belonging to these groups are asked to certify their eligibility for the exclusivity period themselves. This three-week priority period alone should exhaust the fund.
Listed companies, companies with more than 20 locations and permanently closed restaurants are not eligible for grants.
Applications can be submitted through a Small Business Administration website and some point-of-sale systems. Technology companies Clover, NCR Corporation, Square and Toast work with the agency to enable applications for their clients.
Eager restaurateurs are preparing for the application – and are campaigning for additional funds to prevent eligible applicants from being excluded.
“This is great news, but the $ 28.6 billion won’t be enough,” Russell Jackson, a New York City chef, wrote on Twitter in a message urging Congress to “replenish the program as needed.”
