The Small Business Administration will likely open grant applications from the Restaurant Revitalization Fund “within weeks, not months” after President Biden signed the stimulus package in law, Deputy Earl Blumenauer (D-Or.) Told a news conference with the Independent Restaurant Coalition Wednesday morning. The US House of Representatives approved the $ 1.9 trillion American Rescue Plan on Wednesday and Biden is expected to sign the bill on Friday afternoon.
Blumenauer and Senate Majority Leader Chuck Schumer (D-NY) gave a news conference with members of the Independent Restaurant Coalition and high-level restaurant owners on Wednesday morning to discuss how the Restaurant Revitalization Fund will impact small restaurants and bars across the country.
“We are full of hope that this proposal will finally go to the president’s desk, but a lot more work needs to be done,” Blumenauer said on Wednesday. “We have a trillion dollar supply chain that we need to work on to strengthen. We need to work with the White House and make sure it helps our most affected restaurants. This is the beginning of the great recovery of American restaurants. “
After the bill was initially voted by the House on March 1, the Senate increased the amount of money for restaurants from the $ 25 billion initially proposed to $ 28.6 billion. The funding would be divided into government-funded grants with a maximum of $ 10 million per restaurant group or $ 5 million per individual restaurant. Eligible businesses include food and beverage outlets that are not part of a restaurant group affiliated with more than 20 locations and are not publicly traded.
Blumenauer, Schumer and the Independent Restaurant Coalition answered some common questions that operators may have about the next grant program:
When can I apply for a scholarship?
Like the Salary Protection Program, subsidies from the Restaurant Revitalization Fund will be distributed by the Small Business Administration. Schumer said that they will “urge the SBA to advocate for relief and establish the program as soon as the bill is sanctioned” and that they must first confirm Biden’s nominee for SBA Deputy Administrator, Dilawar Syed.
Blumenauer predicted that grant applications “will open in weeks, not months”.
“This is a high priority and […] part of what we did to refine the legislation was to acknowledge the PPP’s failure to relate to the restaurant industry, ”said Blumenauer on Wednesday. “It is a priority and it will take some time because we need to notify independent restaurants.”
Where and how can I apply for a scholarship?
Although the bill has not yet been signed by Biden, as soon as the SBA opens registrations, restaurants and bars with less than 20 locations that may demonstrate lost revenue last year will be able to apply on the SBA website. The SBA’s guidance will appear shortly after the American Rescue Plan is enacted into law.
Smaller franchisees of large chains can apply for a scholarship?
Although independent restaurants are and have been the priority for receiving grants, according to Blumenauer, as long as franchisees meet size requirements (less than 20 locations) and are not publicly traded entities, they can apply.
In addition to size, are there limits to who can apply for a scholarship?
In addition to being a restaurant or bar with less than 20 locations and an unlisted entity, restaurants must be able to prove that they have suffered a loss of revenue last year and cannot have an order pending for closed location operators.
How is the grant amount calculated?
For established restaurants that opened in 2018 or earlier, subsidies are calculated by subtracting a company’s 2020 revenue from its 2019 revenue and also subtracting the first and second drawing PPP loans received in 2020.
For restaurants opened in 2019, the average monthly revenue for 2019 is multiplied by 12 minus the average monthly revenue for 2020 multiplied by 12, and PPP loans received from first and second withdrawals are also subtracted.
Restaurants opened in 2020 are eligible to receive financing equal to the “eligible expenses incurred”, less the first and second draw PPP loans received last year. Restaurants that have not yet opened are also eligible and may receive “financing equal to the eligible expenses incurred prior to the date of promulgation.”
Where will the remaining funds go to?
“Any improperly used funding or remaining funds will go back to the government,” said Independent Restaurant Coalition co-founder Erika Polmer. “There has been a lot of work in terms of defining eligible financing. It is less costly than PPP and broader, and the SBA will probably manage with the idea of helping to increase small business interest, rather than a complicated situation. “
See our previous article detailing the division of the Restaurant Revitalization Fund here.
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