Grants will soon be available for restaurants, some of the hardest hit by the pandemic! When President Biden signed the American Rescue Plan Act of 2021 (ARPA) on March 11th, it included a $28.6 billion Restaurant Revitalization Fund.
Administered by the Small Business Administration (SBA), the funds can be used to cover expenses from February 15, 2020 to December 31, 2021 and possibly beyond. Restaurants, food stands, food trucks, caterers, bars, tasting rooms, and premises of a beverage alcohol producer who offer public tasting and sales are eligible to request grants equal to their pandemic-related revenue loss. Unlike the Paycheck Protection Program (PPP) this funding will be in the form of a grant; business owners will not have to apply for loan forgiveness.
On the list of covered expenses…
- Mortgage and Rent Payments,
- Maintenance costs, including construction of outdoor seating,
- Supplies, including PPE and cleaning materials,
- Food and beverage,
- Covered Supplier costs,
- Operational Expenses, and
- Paid Sick Leave.
Grant funds not used during the covered period would have to be returned to the United States Treasury.
The ARPA defines pandemic-related revenue loss as your entity’s gross receipts (to be defined by the SBA) during 2020 subtracted from your 2019 gross receipts. Entities are able to request a grant for the difference, less any PPP loan(s) already received. Entities opened after 2019 may still be eligible, based on formulas to be determined by the SBA.
APPLYING FOR GRANTS
Restaurants will apply directly to the SBA for this grant funding, once they have developed a webpage and application portal to administer the new program. We recommend eligible entities begin the process of calculating their potential grant amount and how it might overlap with other stimulus relief options, such as the PPP and employee retention credit. Though our Commercial Bankers will not be handling this application process, as we did for PPP loans, we are available to help you navigate the process. Please contact your banker for assistance. Not a current Alliance Bank client? Feel free to call me at (888) 567-2101 for more information.
MORE ABOUT ALLIANCE BANK
Alliance Bank has been serving clients for over 90 years across Benton, Jasper, Pulaski, White, and the surrounding counties. Our bankers combine valuable experience with top-notch customer service, competitive rates, and convenient online banking tools. Learn more at www.MyAllianceBank.com.