The Small Business Administration (SBA) has urged restaurant businesses to submit their application for the Restaurant Revitalization Fund, stating that eligible eating establishments have until Monday, May 24, 8 p.m. ET, to apply.
The $28.6bn Restaurant Revitalization Fund, which was signed into law by President Joe Biden, established an initial $5bn set-aside established by Congress for applicants with gross receipts not more than $500,000.
To further ensure an equitable distribution of funds, Administrator Guzman created two additional funding allocations to ensure the smallest of the small restaurants and other eating establishments have equitable access.
This includes $500m for applicants with 2019 gross receipts not more than $50,000, and $4bn for applicants with 2019 gross receipts between $500,000 and $1,500,000.
In the first two weeks of the RRF program, SBA has received from priority groups:
- 12,898 applications from businesses with not more than $50,000 in pre-pandemic revenue requesting $290m in funds
- 73,671 applications from businesses with not more than $500,000 in annual pre-pandemic revenue requesting $6.1bn in funds
- 34,010 applications from businesses with $500,000 – $1,500,000 in annual pre-pandemic revenue requesting $8.4bn in funds
Because SBA still has potential set-aside funding available for eligible establishments with 2019 annual revenue of no more than $50,000, it will keep the application portal open until Monday, May 24, 8 p.m. ET.
While all qualified restaurants may submit applications, more than $220m of a $500m set-aside remains in the Restaurant Revitalization Fund (RRF).
To date, the RRF program has received more than 303,000 applications representing over $69bn in requested funds, and nearly 38,000 applicants have been approved for more than $6bn.
Administrator Guzman said: “If our nation’s food and beverage industry is going to fully recover, we must ensure as many of the hardest-hit businesses get the economic aid they need.
“We are committed to creating easy to navigate programs and removing barriers that have kept many of our nation’s smallest businesses from accessing these crucial economic lifelines. The SBA will continue to be as entrepreneurial as the small businesses we serve, and we will continue to work as fast as possible to deliver the relief our businesses need so urgently.”
Tom Bené, president and CEO of the National Restaurant Association, said: “The numbers speak to the commitment SBA made to educating owners and operators through their work with the Association, our state partners, and other industry support organizations.
“The funds that have already been distributed will help accelerate the recovery of thousands of restaurants and bring much-needed capital to communities across the country.”