New information is coming out about the funds that will be available to help small businesses. While we don’t yet have specifics on the grants to come, we do know there will some and we will update with specifics as soon as we get details about them.
One are of particular interest to restaurants is the $25 billion Restaurant Revitalization Fund for 2021 to be administered by the Small Business Administration (SBA).
- $5 billion of this will be allocated to restaurants whose gross receipts in 2019 were less than $500,000, and the first 21 days of the program prioritizes small businesses owned by women, veterans, or socially and economically disadvantaged individuals.
- Public companies, government-managed businesses, entities, and affiliates that have more than 20 locations, and entities that applied for a shuttered venue operator grant (as discussed below) will not qualify.
- Grant amounts will not exceed a restaurant’s pandemic-related revenue loss (which is measured by the difference between 2020 and 2019 gross receipts) of up to $10 million (with a limit of $5 million per physical location).
- Grant amounts may be used to cover payroll costs, mortgage payments, rent, utilities, maintenance expenses, operational expenses, paid sick leave, and supplies.
- Grant amounts received from the restaurant revitalization fund won’t be treated as taxable income, and expenditures paid with such grant amounts will still be deductible.
As soon as we know more about this fund, we will send out an email with details, as well as post all new info here.