Restaurant Revitalization Fund

Restaurants and food/ beverage businesses that were adversely affected by the COVID-19 pandemic now have additional help thanks to a new federal program recently announced by the U.S. Small Business Administration. The American Rescue Plan Act established the Restaurant Revitalization Fund to provide emergency funding to help restaurants and other food businesses keep their doors open. The fund provides eligible businesses with “funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location.”
This is a great program for which every food establishment should qualify. Five billion dollars has been set aside for businesses with 2019 gross receipts of not more than $500,000. Additionally, $4 billion is set aside for businesses with 2019 gross receipts from $500,001 to $1,500,000, and $500 million for businesses with 2019 gross receipts of not more than $50,000. Under this program, gross receipts do not include other pandemic-related funding a business has received. The best thing is, recipients won’t have to repay the funding as long it’s used no later than March 11, 2023.
Businesses eligible to apply include restaurants, food stands, trucks and carts, caterers, bars, saloons, lounges and taverns, snack and nonalcoholic beverage bars, bakeries, brewpubs, tasting, and taprooms. Breweries, microbreweries, wineries, and distilleries with onsite sales to the public may also apply. Other eligible businesses include inns that sell food and beverages to the public and the facilities of a beverage or alcohol producer where the public may taste a sample or purchase products.
Registration for the SBA application portal began on April 30, and the application opened May 3. The SBA has reserved the first 21 days for processing applications from priority groups only. Priority groups are self-certified businesses that meet the eligibility requirements for small businesses owned by women, veterans, or socially and economically disadvantaged individuals. That’s you!
The funds can be used for business expenses such as payroll costs including sick leave, operating expenses, mortgage, and rent payments, debt service both principal and interest, utility payments, maintenance expenses, food and beverage expenses, supplier costs, construction of outdoor seating, and supplies including protective equipment and cleaning materials.
Download the program guide at https://www.sba.gov/document/support-restaurant-revitalization-funding-program-guide. There are also two webinars to help you get your documents ready and prepare your application at https://youtu.be/nKnG_yEavG4 and https://youtu.be/fxi3EcB_BZ4. There is no reason why you can’t get help through this program. No matter how small your food business is. Whether you operate a home-based catering business or a mobile barbeque pit like Brother Corey Richardson on Erie Avenue. Don’t sleep on this opportunity. Go to https://restaurants.sba.gov/requests/borrower/login/?next=/ and start your application now!
SBDC Food Business Online Training Series
If you have a restaurant, food cart, food truck, other food-related business or thinking about starting one, check out this free, live webinar series sponsored by the Pennsylvania Small Business Development Centers to learn things you need to know about running a successful food/beverage business.
The webinars scheduled for May 2021 include:
• May 10, 12 Noon to 1:30 PM — Determining Cost of Goods, Pricing Your Product. This session will discuss how to determine the cost of goods sold, how to find the right pricing for your product, and what profit margins can be expected in the current food industry.
• May 17, 12 Noon to 1:30 PM — Sales Forecasting, Market Sizing, Gap Analysis. Participants will learn how to identify the gaps in the market, make sure there is a market in the gap, and forecast sales based on market capabilities.
• May 24, 12 Noon to 1:30 PM — Marketing Communications, Social Media & Influencers. Participants will learn how to effectively utilize marketing communications, recognize communications across various channels and determine the appropriate platforms.
To register for these sessions email sbdc@temple.edu and the Zoom link will be sent upon registration. Another food webinar on “Running a Great Farmers’ Market, Part 2: Display Building,” will take place May 18, from 6:00 PM to 7:00 PM. The pandemic has changed food systems and farmer’s markets across the country. What was a great display this time last year may not be effective anymore. This workshop will discuss what makes a great display, changes you may need to implement, and how consumers’ changing shopping habits may impact how they interact with your displays. Participants will receive a handout on the display building. To register for this workshop email sbdc@scranton.edu or call 570-941-7588.