The U.S. Small Business Administration (SBA) is awarding funding through the Restaurant Revitalization Program to restaurants, bars, and other similar places of business that serve food or drink. The purpose of this funding is to provide support to eligible entities that suffered revenue losses related to the COVID-19 pandemic. On March 11, 2021, the American Rescue Plan Act (ARPA) became public law (P.L. 117-2). Section 5003 established the Restaurant Revitalization Fund (Fund), and appropriated $28.6 billion for SBA to award funds. These appropriations remain available until expended. SBA will continue accepting applications subject to availability of funds. Fund must be used for eligible uses no later than March 11, 2023.
Eligible entities are businesses that are not permanently closed and include businesses where the public or patrons assemble for the primary purpose of being served food or drink including:
- Food stands, food trucks, food carts
- Bars, saloons, lounges, taverns
- Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products
- Other similar places of business in which the public or patrons assemble for the primary purpose of being served food or drink
- Snack and nonalcoholic beverage bars
- *Bakeries • *Brewpubs, tasting rooms, taprooms
- *Breweries and/or microbreweries
- *Wineries and distilleries
Note: To satisfy the statutory requirement for “place of business in which the public or patrons assemble for the primary purpose of being served food or drink,” an eligible entity must have at least 33% in 2019 on-site sales to the public. The original business model of eligible entities that opened in 2020 or that have not yet opened should have contemplated at least 33% of gross receipts in on-site sales to the public. Those entities without additional documentation requirements, such as restaurants and bars, are presumed to have on-site sales to the public comprising at least 33% of gross receipts in 2019. All applicants must attest in the application to the following “The Applicant is eligible to receive funding under the rules in effect at the time this application is submitted.”
Eligible Uses of Funds
You may use funds for the following expenses during your covered period:
- Business payroll costs, including sick leave and costs related to the continuation of group health care, life, disability, vision, or dental benefits during periods of paid sick, medical, or family leave, and group health care, life, disability, vision, or dental insurance premiums;
- Payments on any business mortgage obligation (both principal and interest; note: this does not include any prepayment of principal on a mortgage obligation);
- Business rent payments, including rent under a lease agreement (note: this does not include any prepayment of rent);
- Business debt service (both principal and interest; note: this does not include any prepayment of principal or interest);
- Business utility payments for the distribution of electricity, gas, water, telephone, or internet access, or any other utility that is used in the ordinary course of business for which service began before March 11, 2021.
- Business maintenance expenses including maintenance on walls, floors, deck surfaces, furniture, fixtures, and equipment;
- Construction of outdoor seating;
- Business supplies, including protective equipment and cleaning materials;
- Business food and beverage expenses, including raw materials for beer, wine, or spirits;
- Covered supplier costs, which is an expenditure made by the eligible entity to a supplier of goods for the supply of goods that:
- Are essential to the operations of the entity at the time at which the expenditure is made; and
- Is made pursuant to a contract, order, or purchase order in effect at any time before the receipt of Restaurant Revitalization funds; or Page 9
- With respect to perishable goods, a contract, order, or purchase order in effect before or at any time during the covered period;
- Business operating expenses, which is defined as business expenses incurred through normal business operations that are necessary and mandatory for the business (e.g. rent, equipment, supplies, inventory, accounting, training, legal, marketing, insurance, licenses, fees). Business operating expenses do not include expenses that occur outside of a company’s day-to-day activities. Note: Past-due expenses are eligible if they were incurred beginning on February 15, 2020 and ending on March 11, 2023.
Timeframe for Using Funds
Awardees must use all Restaurant Revitalization funds by March 11, 2023 on eligible expenses incurred beginning on February 15, 2020 and ending on March 11, 2023. If the business permanently closes, the covered period will end when the business permanently closes or on March 11, 2023, whichever occurs sooner. Awardees that are unable to use all Restaurant Revitalization funds on eligible expenses by the end of the covered period must return any unused funds to the government (post award guidance to follow this guide).
How to Apply
There are three ways to apply for the Restaurant Revitalization fund.
- Through a recognized SBA Restaurant Partner
- Through SBA directly at restaurants.sba.gov
- Telephonically at (844) 279-8898
Apply through SBA Restaurant Partners
The SBA developed partnerships with multiple recognized technology companies that provide software, hardware & payments services to the restaurant industry to help ensure wide and equitable distribution of relief. These partners are referred to as SBA’s Restaurant Partners or SBA’s Point-of-Sale (POS) Restaurant Partners. If you currently use one of the SBA’s Restaurant Partners, you can apply for funding through their website or secure portal. These partners developed capabilities to make it easier for applicants to calculate, validate, and submit applications to the SBA. The SBA encourages applicants who are using our partners to apply through their customized process – this will save time in preparing and processing the application. Each Restaurant Partner may have unique processes or supporting materials Applicants can use. SBA is actively working to add additional partnerships in the coming weeks. Please monitor sba.gov/restaurants for additional updates from the SBA on official partners and upon announcement, visit your partner of choice’s website to learn more information about their ability to support you in your application.
Apply Directly through SBA
- Gather documentation outlined in this document Page 11
- If you have access to the internet and will not apply through one of SBA’s Restaurant Partners, visit restaurants.sba.gov to access the application platform
- Create an account
- Complete the application questionnaire and attestations
- Upload necessary documentation
- Upon application completion, a DocuSign package will be sent to the email entered in the application portal
- Execute DocuSign package immediately in order to trigger SBA review process
- SBA will begin review of your application. Review will take approximately 14 days to complete provided complete and validated documentation. Applicants may check the status of their application on the application portal.
- Application decision information or request for further documentation will be sent to the email associated with the Applicant account
- If approved, funds will automatically be deposited to the bank account entered into the application
Apply Telephonically Directly through SBA
- Gather documentation outlined in this document
- Call (844) 279-8898
- Complete the application questionnaire and attestations with support agent
- Completed application and signature documents mailed to Applicant
- Applicant must mail fully executed and notarized application back to SBA (return address instructions included in mailed application)
- SBA will begin review of your application. Review will take approximately 14 days to complete provided complete and validated documentation.
- Application decision information or request for further documentation will be sent to the email associated with the Applicant account or mailed if no email available
- If approved, funds will automatically be deposited to the bank account entered into the application
Applicants that were in operation prior to or on January 1, 2019, must supply at the time of application documentation of gross receipts for 2019 and 2020;
Applicants that began operations partially through 2019 and use calculation 2 must supply at the time of application documentation of gross receipts for 2019 and 2020.
Applicants that began operations partially through 2019 and use calculation 3 must supply at the time of application documentation of gross receipts for 2020.
Applicants that began operations on or between January 1, 2020 and ending on March 10, 2021 and Applicants that have not yet opened as of March 11, 2021, but have incurred eligible expenses, must supply at the time of application documentation of gross receipts and eligible expenses for the length of time in operations.
- For all Applicants, the following documentation is required:
- The application: SBA Form 3172, completed, initialed, and signed. Completion of this form digitally on the SBA Platform will satisfy this requirement. Page 16
- Verification for Tax Information: IRS Form 4506-T, completed and signed by Applicant. Completion of this form digitally on the SBA Platform will satisfy this requirement.
- Gross Receipts Documentation: Any of the following documents demonstrating gross receipts and, if applicable, eligible expenses:
- Business tax returns (IRS Form 1120 or IRS Form 1120-S);
- IRS Form1040 Schedule C; IRS Form 1040 Schedule F;
- For a partnership: partnerships IRS Form 1065 (including K-1s);
- Bank statements;
- Externally or internally prepared financial statements such as Income Statements or Profit and Loss Statements;
- Point of sale report(s), including IRS Form 1099-K.
For Applicants that are a brewpub, tasting room, taproom, brewery, winery, distillery, or bakery:
In addition to the documents in (1) above, documents evidencing that onsite sales to the public comprise at least 33% of gross receipts for 2019. These may include 2019 Tax and Trade Bureau (TTB) Forms filed, state or local government forms filed, or internally created reports from inventory management, sales reporting, or accounting software.
For Applicants that are an Inn:
In addition to the documents in (1) above, documents evidencing that onsite sales of food and beverage to the public comprise at least 33% of gross receipts for 2019. These may include internally created revenue reports or accounting reports.