The American Rescue Plan Act of 2021 is providing over $28 billion in additional support for restaurants. Grant size for eligible entities will be determined based on “pandemic-related revenue loss” defined as the difference between 2020 and 2019 gross receipts minus any amounts received under the Paycheck Protection Program.
The money may be used for covered expenses for eligible entities through the end of 2021, as well as reimbursement for costs incurred during the covered period so long as they have not been paid under another program.
Covered Period is February 15, 2020 – December 31, 2021 (or a date to be determined by the SBA that is no later than two years after the program is enacted).
Eligibility Entity means a 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, or other similar place of business in which the public or patrons assemble for the primary purpose of being served food or drink.
Covered Expenses include payroll costs, payments of principal or interest on any mortgage obligation, rent and utilities; maintenance expenses, PPE equipment, food and beverage expenses that are within the scope of the normal business practice of the eligible entity before the covered period; covered supplier costs, operational expenses, paid sick leave, and any other expenses that the SBA determines to be essential to maintaining the eligible entity.
The SBA will be administering this program directly through an online portal, with certain minority owned businesses getting preference for the first 21 days. Both the online application and additional guidance will be available soon on the Small Business Administration’s website. The Grant page of the Small Business Administration can be found here.
For the full text of SEC. 5003 of the American Rescue Plan Act of 2021 link here.
*The information provided in this communication is general in nature and is for informational purposes only. It should not be construed as legal, tax, or accounting advice.