7 SBA Grant Program for Restaurants and Food Service

Small Business Administration (SBA) grants are a vital source of funding for many small businesses, including restaurants and food services. The COVID-19 pandemic hit the food industry particularly hard, with many restaurants and food service businesses struggling to stay afloat.

In response, the SBA has launched several grant programs specifically designed to help these businesses survive and recover from the pandemic’s economic impact.

Available SBA Grants for Restaurants and Food Service Businesses

1.      The Restaurant Revitalization Fund (RRF)

One of the main SBA grants available to restaurants and food service businesses is the Restaurant Revitalization Fund (RRF). This grant program was created as part of the American Rescue Plan Act of 2021, and it provides up to $28.6 billion in funding to eligible restaurants and food service businesses.

The RRF provides grants of up to $10 million per business, and it covers a wide range of expenses, including payroll, mortgage, rent payments, utilities, and supplies.

Requirements (Eligibility)

Eligibility for Restaurant Revitalization Fund (RRF) by restaurants and food service businesses:

• Small business status: The business must meet the SBA’s definition of a small business, which includes size standards based on the industry and the number of employees.
• Business operations: The business must have been in operation as of February 15, 2020.
• Business Location: The business must be located in the U.S. and have a U.S. tax identification number.
• Business purpose: The business must be a restaurant or food service business that has experienced a decline in revenue as a result of the pandemic.

How to Apply

• Review eligibility: Review the eligibility requirements and make sure that your business meets all the criteria.
• Register for the grants portal: Register for the grants portal managed by the Small Business Administration (SBA).
• Complete an application: Complete an application for the RRF and provide the required documentation and information, such as financial statements and tax returns.
• Wait for approval: Wait for the SBA to review and approve your application.
• Receive funds: If approved, the business will receive a grant to help cover costs associated with the pandemic.

2.      The Shuttered Venue Operators Grant (SVOG)

Another SBA grant program available to restaurants and food service businesses is the Shuttered Venue Operators Grant (SVOG). This grant program provides up to $16 billion in funding to eligible businesses, including live venues, movie theaters, and museums, as well as restaurants and bars that primarily serve food and drinks.

The SVOG provides grants of up to $10 million per business, and it covers a wide range of expenses, including payroll, mortgage, rent payments, utilities, and supplies.

Requirements (Eligibility)

• Business operations: The business must have been in operation on February 29, 2020.
• Business Location: The business must be located in the U.S. and have a U.S. tax identification number.
• Revenue loss: The business must demonstrate a significant decline in revenue as a result of the pandemic.

How to Apply

To apply for a Shuttered Venue Operators Grant (SVOG), the following steps can be followed:

• Review eligibility: Review the eligibility requirements and make sure that your business meets all the criteria.
• Register at the grants portal: Register at the grants portal managed by the Small Business Administration (SBA).
• Complete an application: Complete the application and provide the required documentation and information, such as financial statements and tax returns.
• Wait for approval: Wait for the SBA to review and approve your application.
• Receive funds: If approved, the business will receive a grant to help cover costs associated with the pandemic.

3.      The Emergency Injury Disaster Loan (EIDL) Advance

The Emergency Injury Disaster Loan (EIDL) Advance is another SBA grant program available to restaurants and food service businesses. This grant program provides up to $10,000 in emergency funding to eligible businesses, and it does not have to be repaid.

The EIDL Advance is intended to help businesses cover immediate operating expenses, and it can be used for a wide range of expenses, including payroll, mortgage, rent payments, utilities, and supplies.

Requirements (Eligibility)

• Small business status: The business must meet the SBA’s definition of a small business, which includes size standards based on the industry and the number of employees.
• Business operations: The business must have been in operation on January 31, 2020.
• Business Location: The business must be located in a declared disaster area.
• Business purpose: The business must be a for-profit, non-profit, tribal, or veteran organization, self-employed individual, or independent contractor.

How to Apply

To apply for an Emergency Injury Disaster Loan (EIDL) Advance, the following steps can be followed:

• Complete an application: Complete an EIDL application through the SBA’s disaster loan portal.
• Submit required information: Submit all required information, such as your business plan, financial statements, and tax returns, to support your loan application.
• Wait for approval: Wait for the SBA to approve or deny your loan application.
• Receive funds: If approved, the business will receive an EIDL Advance, which is a grant that does not need to be repaid.

4.      The Paycheck Protection Program (PPP)

The Paycheck Protection Program (PPP) is another SBA grant program available to restaurants and food service businesses. This grant program provides up to $10 million in funding to eligible businesses, and it covers a wide range of expenses, including payroll, mortgage, and rent payments, utilities, and supplies.

The PPP is intended to help businesses keep their employees on the payroll, and it provides forgiveness for a portion of the loan if certain criteria are met.

Requirements (Eligibility)

• Small business status: The business must meet the SBA’s definition of a small business, which includes size standards based on the industry and the number of employees.
• Business operations: The business must have been in operation on or before February 15, 2020.
• Business Location: The business must be located in the U.S. and have a U.S. tax identification number.
• Business purpose: The business must be a for-profit, non-profit, tribal, or veteran organization, self-employed individual, or independent contractor.

How to Apply

To apply for a Paycheck Protection Program (PPP) loan, the following steps can be followed:

• Contact a lender: Contact a participating lender, such as a bank, credit union, or fintech company, to start the application process.
• Gather required information: Gather all the necessary information, such as your business plan, financial statements, and tax returns, to support your loan application.
• Complete an application: Complete a loan application and submit it along with the required information to the lender.
• Submit documentation: Provide additional documentation as requested by the lender, such as payroll records or proof of business ownership.
• Wait for approval: Wait for the lender to approve or deny your loan application.

5.      The National Restaurant Association Educational Foundation (NRAEF) Grants

The National Restaurant Association Educational Foundation (NRAEF) also provides grants to restaurants and food service businesses. This foundation offers a wide range of grants and scholarships for businesses in the food industry, including grants for start-ups, minority-owned businesses, and businesses in underserved communities.

Requirements (Eligibility)

• Restaurant or food service industry: The business must be a part of the restaurant or food service industry.
• Employee training and education focus: The grant must be used for employee training and education purposes.
• Non-profit status: The business must be a non-profit organization.

How to Apply

To apply for a National Restaurant Association Educational Foundation (NRAEF) grant, the following steps can be followed:

• Review grant offerings: Review the grant offerings on the NRAEF website to determine which grant best fits your business needs.
• Gather required information: Gather all the necessary information, such as your business plan, financial statements, and tax returns, to support your grant application.
• Submit an application: Submit your grant application along with the required information to the NRAEF.
• Follow up: Follow up with the NRAEF to ensure that your application was received and to inquire about the status of your grant.

6.      Women’s Business Centers (WBCs) Grants

Women’s Business Centers (WBCs) also provide grants to restaurants and food service businesses. WBCs are a network of centers that provide assistance and support to women-owned businesses, including funding and resources for start-ups, expansions, and business growth.

Requirements (Eligibility)

• Women-owned: The business must be owned or controlled by a woman or women.
• Small business status: The business must meet the SBA’s definition of a small business, which includes size standards based on the industry and the number of employees.
• For-profit status: The business must be a for-profit enterprise.

How to Apply

To apply for a Women’s Business Centers (WBCs) grant, the following steps can be followed:

• Research: Research the WBCs in your area and their specific grant offerings to determine which grant best fits your business needs.
• Review eligibility: Review the eligibility criteria for the grant you are interested in to ensure that you and your business meet the requirements.
• Gather required documents: Gather all the necessary documents, such as your business plan, financial statements, and tax returns, to support your grant application.
• Submit an application: Submit your grant application along with the required documents to the WBC in your area.
• Follow up: Follow up with the WBC to ensure that your application was received and to inquire about the status of your grant.

7.      State and Local Government Grants

State and local governments may offer grants for restaurants and food service businesses that have been impacted by the pandemic.

Requirements (Eligibility)

Eligibility and requirements for these grants can vary by state or local area, but some common eligibility criteria include:

• Business operations: The business must have been in operation as of a certain date, such as February 15, 2020.
• Business Location: The business must be located within the state or local area offering the grant.
• Revenue loss: The business must demonstrate a significant decline in revenue as a result of the pandemic.
• Business size: The business must meet the size criteria set by the state or local government, which may include the number of employees or annual revenue.

How to Apply

To apply for state or local government grants, the following steps can be followed:

• Research available grants: Research the grants available in your state or local area to determine if there are any that are applicable to your business.
• Review eligibility: Review the eligibility requirements and make sure that your business meets all the criteria.
• Complete an application: Complete an application for the grant and provide the required documentation and information, such as financial statements and tax returns.
• Wait for approval: Wait for the state or local government to review and approve your application.
• Receive funds: If approved, the business will receive a grant to help cover costs associated with the pandemic.

It’s important to note that state and local government grants can be competitive, so it’s advisable to apply as soon as possible and provide a well-prepared application to increase your chances of being approved for the grant. Additionally, it’s a good idea to check the state or local government’s website for updates on grant availability and requirements.