The Small Business Administration (SBA) is a government agency established to boost the economy by providing grants to small businesses. The SBA also provides counseling for a new business owner and provides several other tools that can benefit business owners in many diverse ways.
For many who have just started a business, and need government grants to fund and grow the business, the SBA is a great option to explore. The SBA has several grants that are specifically tailored to many individuals from minority grants to women-owned businesses and much more.
Today, we will be exploring the SBA grant that was established to support women who own a restaurant, and food trucks — $25 Billion Restaurant Revitalization Funds.
What is the SBA Restaurant Revitalization Fund Grant Program?
The Small Business Administration (SBA) Restaurant Revitalization Fund Grant is a new program established by the American Rescue Plan Act of 2021 to provide funding to help restaurants and other eligible food service businesses recover from the economic impacts of the COVID-19 pandemic.
The program will provide funding in the form of grants to help these businesses pay for expenses such as payroll, rent, mortgage payments, etc.
One of the most significant impacts of the COVID-19 pandemic has been on the restaurant industry. The widespread closures and restrictions on indoor dining have had a devastating effect on the industry, with many businesses struggling to stay afloat.
The SBA Restaurant Revitalization Fund Grant is designed to provide much-needed financial assistance to help these businesses recover and stay open. The program will provide grants of up to $10 million per business and $5 million per physical location.
The grants will be based on a business’s 2019 gross receipts, with businesses that have suffered the greatest economic loss due to the pandemic receiving priority for funding. Eligible expenses that can be covered by the grants include payroll, rent, mortgage payments, utilities, maintenance, supplies, food and beverages, outdoor seating, and personal protective equipment.
The program will be administered by the SBA, and applications will be accepted starting on May 3, 2021. Businesses will be able to apply online through the SBA website. In addition to the online application, businesses will also need to provide documentation such as tax returns, payroll reports, and other financial statements to demonstrate their eligibility for the grant.
Requirements for the SBA Restaurant Revitalization Fund Grant
The Small Business Administration (SBA) Restaurant Revitalization Fund Grant has certain eligibility criteria that businesses must meet in order to apply for and receive funding. The eligibility criteria include:
1. Business Type
The business must be a restaurant, food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting room, or taproom that has a history of paying federal taxes.
2. Gross Receipts
The business must have experienced a decline in gross receipts during the pandemic. The business must have had 2019 gross receipts no greater than $500 million and not be a publicly traded company.
3. Physical Location
The business must have a physical location that is located in the United States and its territories.
The business must be at least 51% owned by U.S. citizens or legal permanent residents.
5. Current Operations
The business must have been in operation as of February 15, 2020.
6. Other Restrictions
Certain types of businesses are not eligible for the grant, such as franchises that are part of a larger chain and businesses that have permanently closed.
How to Apply for the SBA Restaurant Revitalization Fund Grant
The SBA $25 Billion Restaurant Revitalization Funds is a seamless application process that requires that you fill out the application and provide vital information that can help you apply for the grant successfully. It is important that you check the grant eligibility to ensure that you qualify to apply for this grant.
This grant is time-sensitive and requires that you submit your application within the first 21 days to a select number before it opens to the general public to apply. The following businesses would be qualified first:
- Women-owned businesses
- Members of socially and economically disadvantaged business-owners
- Veteran-owned business owners
- Minority-owned business owners
The Small Business Administration (SBA) Restaurant Revitalization Fund Grant application process involves several steps that include:
a. Review Eligibility Criteria
Review the eligibility criteria to ensure that your business meets the requirements to apply for the grant.
b. Gather Required Documents
Collect the necessary documents, such as tax returns, payroll reports, and other financial statements, that demonstrate your business’s eligibility for the grant.
c. Create an SBA Account
Create an account on the SBA website if you don’t already have one.
d. Fill out the Application Form
Once you have an account, log in and fill out the application form. The form will ask for information about your business, such as the name, address, and tax ID number, as well as information about the grant, such as the amount requested and how the funds will be used.
e. Submit the Application Form
After you have completed the application form, submit it through the SBA website.
f. Wait for Approval
Once you have submitted the application, the SBA will review it and notify you of their decision.