$28.6 Billion of American Rescue Plan Dedicated to RestaurantsMar 17, 2021 12:00AM ● By Rancho Cordova Chamber of Commerce
RANCHO CORDOVA, CA (MPG) - One of the most significant elements of the American Rescue Plan is the creation of the Restaurant Revitalization Fund (RRF). This new $28.6 billion grant program specifically targets hard-hit restaurants and bars, with restaurants able to apply for grants based on lost gross revenue between 2019 and 2020. The maximum grant size will be $5 million for restaurants and $10 million for restaurant groups. Small independent restauranteurs account for nearly $250 billion in lost revenue due to the pandemic.
Chamber staff participated in a U.S. Chamber of Commerce Briefing on March 12. Thanks to the US National Restaurant Association, below are some key highlights to know and prepare for:
Eligible entities include a restaurant, food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting room, taproom, licensed facility, or premise of a beverage alcohol producer where the public may taste, sample, or purchase products, or other similar places of business in which the public or patrons assemble for the primary purpose of being served food or drink;
You must own fewer than 20 restaurants and not be publicly traded; You may be a franchise owner of a publicly-traded restaurant; Grants for restaurants may be up to $5 million; Grants for restaurant groups may be up to $10 million; $5 billion is available to businesses with gross receipts of $500,000 or less; Eligible grantees may receive grants based on pandemic-related revenue loss, calculated by subtracting its 2020 gross receipts from its 2019 gross receipts; The Act provides that grant proceeds are used to cover payroll, mortgage, rent, utilities, maintenance, operational costs, paid sick leave, and supplies, the grant proceeds will not be taxable and, importantly, the related expenditures will still be deductible; RRF is a grant program – not forgivable loans like PPP; Grants are not taxed like income and all normal federal tax deductions are protected; The program will be administered by the SBA and there are limited funds.
The first 21 days of the program will prioritize small businesses owned by women, veterans, and socially and economically disadvantaged individuals.
PPP Application Deadline is Wednesday, March 31, 2021
While Congress is considering legislation to extend this deadline, businesses are encouraged to apply now.
Visit SBA.gov or Rancho Cordova’s website for eligible Paycheck Protection Program lenders.