Following a big announcement from the Small Business Administration (SBA) on April 17th, 2021, we now have a much clearer picture of the eligibility requirements for the Restaurant Revitalization Fund Grant. This clarity comes as a relief following recent changes to the application process. The updated eligibility guidelines, along with a comprehensive guide to the application process, can now be found on the SBA's Website.
Who's Eligible?
Restaurants, Food Carts, Food Trucks, Food Stands, Inns, Breweries, Bakeries, Distilleries, Caterers, Wineries, Bars including snack and non-alcoholic drink bars, Saloons, Lounges, and Taverns are eligible entities.
Some entities will be required to meet additional criteria when applying for the grant. The National Restaurant Association has done an excellent job detailing the specifics in a recent PDF, though the details may change.
Here is a summary of the entities that must meet additional criteria. An entity may be required to show supporting evidence and documentation in some instances.
Inns
To be eligible, an inn will be required to show that it has not less than 33% in gross receipts from sales of onsite food and beverages to the public. During the application process, the SBA may request evidence of the inns' onsite sales; therefore, gathering that documentation ahead of time is encouraged.
Breweries
Microbreweries, Taprooms, Tasting rooms, Brewpubs, and Breweries will be required to demonstrate that they have at least 33% gross receipts from onsite sales to the public. During the application process, Tax and Trade Bureau reports for those gross receipts may need to be shared with the SBA.
Distilleries
Distilleries will need to show 33% gross receipts from onsite sales to the public. Like breweries, distilleries may also need to produce their Tax and Trade Bureau reports as evidence of the gross receipts.
Bakeries
Bakeries will likewise need to demonstrate that onsite sales to the public account for at least 33% in gross receipts to be eligible for the grant. Tax and Trade Bureau reports may also be requested as proof.
Wineries
Much like Distilleries, bakeries, and breweries, wineries will also need to have had at least 33% of their gross receipts from onsite sales to the public. Again, Tax and Trade Bureau reports may be requested.
Disqualification
Certain circumstances will disqualify an entity from being eligible for the restaurant revitalization grant.
An entity will not be eligible to receive funding for the grant if it has filed for bankruptcy under chapter 7 or liquidation under chapter 11.
Any entity that is state or government-owned or operated is not able to receive funding through the grant.
Publicly traded companies are not eligible.
If the entity has received a Shuttered Venues Operations Grant (SVOG) or has an SVOG application pending, they will not be eligible for the Restaurant Revitalization Fund Grant.
What are the next steps?
All eligible entities may apply when ready; however, only entities deemed priority groups will have funding approved during the first 21 days.
Priority groups in this instance are defined as small businesses owned by women, veterans, or individuals who are socially or economically disadvantaged.
Following the priority period, the SBA will process claims in the order in which they were received.