Federal restaurant fund will focus on businesses that have been overlooked in relief efforts
Photo / Maureen Milliken
Owners of restaurants and other food-related businesses will soon be able to apply to the Restaurant Revitilization Fund for help.
Restaurant owners in the coming weeks will be able to apply for the Restaurant Revitalization Fund, set up with $28.6 billion from the American Rescue Plan, but the Small Business Administration wants to make sure that it reaches a diverse population of business owners.
Groundwork for the application launch — a date hasn't yet been set — is being rolled out in order to increase outreach and training and make sure there aren't technical issues.
The SBA said that the preparation period is an effort to reach out to diverse stakeholders in order to make sure the organization, which is administering the program, understands the needs and barriers restaurants face in accessing emergency relief. Access for historically overlooked groups was a problem with last year's Payroll Protection Program.
Once the program opens, for the first three weeks applications will be limited to businesses owned by women, veterans and socially and economically disadvantaged individuals. The fund is for restaurants, bars, tasting rooms, food carts, inns that serve food, and other food-related businesses.
Isabella Casillas Guzman, SBA administrator, said in a news release that the program's goals are to make sure businesses can meet payroll, buy supplies "and get what they need in place to transition to today’s COVID-restricted marketplace."
“We’re also focused on ensuring that the RRF program’s application process is streamlined and free of burdensome, bureaucratic hurdles, while still maintaining robust oversight," Guzman said. "The SBA aims to be as entrepreneurial as the entrepreneurs we serve — and that means meeting every small business where they are, and giving them the support they need to recover, rebuild and thrive.”
Over the next two weeks, the SBA will establish a seven-day pilot period for the RRF application portal and conduct extensive outreach and training. Participants will be randomly selected from existing PPP borrowers in the priority groups, and won't get money until the application portal is open to the public.
Small businesses owned by women, veterans and socially and economically disadvantaged individuals will be able to apply after the pilot program is finished. The opening date has yet to be announced. After 21 days, all eligible applicants are encouraged to submit applications.
Reaching out to the overlooked
Eligible businesses are:
- Restaurants;
- Food stands, food trucks, food carts;
- Caterers;
- Bars, saloons, lounges, taverns;
- Snack and nonalcoholic beverage bars;
- Bakeries (onsite sales to the public comprise at least 33% of gross receipts);
- Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts);
- Breweries and/or microbreweries (onsite sales to the public comprise at least 33% of gross receipts);
- Wineries and distilleries (onsite sales to the public comprise at least 33% of gross receipts);
- Inns (onsite sales of food and beverage to the public comprise at least 33% of gross receipts);
- Licensed premises of a beverage alcohol producer where the public may taste, sample or buy products.
Erika Polmar, executive director of the Independent Restaurant Coalition said that the guidelines were crafted by the SBA after conversations with independent restaurant and bar operators across the country.
"We are grateful to the SBA for their hard work to make this process as accessible as possible in a short period of time," Polmar said.
Ron Busby Sr., president and CEO, U.S. Black Chambers Inc. said that the initiative will help a historically overlooked business sector. "In addition to historically having less operating liquidity and revenue than almost any other small business demographic, Black-owned restaurants received significantly less stimulus funding during the COVID-19 pandemic, heightening challenges and leading to disproportionate closures,” Busby said.
In addition to restaurant groups and leading advocacy groups for underserved business communities, the SBA has engaged national and state trade associations, and other small business stakeholders in recent weeks to understand their concerns about relief programs.
“Small and independent craft breweries are vibrant community gathering places that can be found in nearly every congressional district in the U.S. and contribute to manufacturing, hospitality, retail, tourism and agricultural industries,” said Bob Pease, president and CEO, Brewers Association.
“We are pleased to work with the SBA to promote the Restaurant Revitalization Fund landing page and its available resources, and assist the breweries hit hardest by COVID-19 secure much needed additional relief to help them survive the pandemic and prepare for the restart of the economy.”
Potential applicants can visit the SBA website about the program for more details. There is also a Spanish language version of the page.
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