Special Update
Restaurant Revitalization Fund Grants:
What You Need to Know
One of the hardest-hit industries during the COVID-19 pandemic has been restaurants, with shutdowns and restrictions cutting off revenue opportunities. The new Restaurant Revitalization Fund, part of the recently passed American Rescue Plan Act, will provide $28.6 billion in grants to restaurants and bars in need.

Here are five big things restaurants need to know about the RRF grants.
Who is eligible for RRF grants?
  • Most American restaurants and bars that lost revenue in 2020 versus 2019 will be eligible to apply for RRF grants. The ARPA explicitly names the following types of establishments that should be eligible: “restaurant, food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting room, taproom, licensed facility or premise of a beverage alcohol producer where the public may taste, sample, or purchase products.”

How and when can I apply?
  • The Small Business Administration (SBA) will administer and disperse the RRF grants, but the program does not yet have an official launch date as of mid-March 2021. Those interested in obtaining RRF grants should keep a close eye on the SBA’s COVID-19 relief options web portal.

How much can I get from the grant program?
  • Generally speaking, restaurants can apply for grants that are equal to 2020 gross revenue minus 2019 gross revenue. For businesses in operation for all of 2019 and 2020, the maximum grant size will be $5 million for restaurants and $10 million for restaurant groups. Grant funds will not be taxed like income.

What can grant funds be used for?
  • Payroll costs.
  • Payments of principal or interest on any mortgage obligation.
  • Rent payments, including rent under a lease agreement.
  • Utilities.
  • Maintenance, including new outdoor seating construction.
  • Supplies, including PPE and cleaning materials.
  • Food and beverage inventory.
  • Covered supplier costs.
  • Operational expenses.
  • Paid sick leave.
  • Any other expense SBA says is essential to maintain operations.

Restaurant and bar owners need to prepare now.
  • Those that want to apply for grants should register with the government using the System of Award Management (SAM) if they are not already.
  • Secondly, you should work with an accountant to prepare paperwork that clearly shows your gross revenue loss in 2020 as compared to 2019.
Menlo Park Chamber of Commerce | (650) 325-2818 | menloparkchamber.com