Restaurants across the country are eager to get back to something resembling pre-pandemic operations. In 2020, the federal government passed the CARES Act, which offered small businesses low-interest loans and the Paycheck Protection Program. Recently, Congress followed up with the Restaurant Revitalization Fund and Restaurant Relief Bill.
As vaccinations become available to everyone and the warmer weather brings customers back to in-house dining, restaurants can potentially get an extra boost from this new legislation. Here’s what they need to know.
Can I still benefit from the CARES Act or PPP loans?
The Small Business Administration (SBA) will accept applications for PPP loans until May 31st of 2021. However, funding may run out before then. If you’re still looking to use the CARES Program or PPP loans, talk to your financial advisor.
If you already received a loan, you may be eligible to apply again. In December of 2020, Congress passed the COVID-19 Economic Relief Bill. This bill allows small businesses that already received a PPP loan under the CARES Act to reapply if they have experienced a revenue loss of 25% or more and have fewer than 300 employees.
The SBA is also offering low-interest federal disaster loans until December 31st of 2021. Eligible small businesses may receive up to $2 million to pay down debt, make payroll, and handle other bills and business expenses affected by COVID-19. Click here to learn more about the CARES ACT and PPP loan information specific to your state.
What is the Restaurant Revitalization Fund & the Restaurant Relief Bill?
On March 11th, the U.S. Government passed the American Rescue Plan Act. Of the $1.9 trillion in COVID-19 relief funds, $28.6 billion went to the Restaurant Revitalization Fund to support the recovery of small to medium-sized food and beverage businesses.
Lawmakers intended the funding to help those in the foodservice business reopen their doors to customers, fund off-premise revenue, re-hire staff, and stay afloat during the remainder of the pandemic.
What restaurants are eligible for relief funding?
Most small to medium-sized restaurants are eligible for funds from this plan. Eligibility requirements include:
- Restaurants, food stands, food trucks, food carts, and caterers
- Licensed alcohol providers or producers such as saloons, inns, taverns, bars, lounges, brewpubs, tasting rooms, and taprooms
- Any of the above businesses that are located in an airport or are tribally-owned
Businesses that are not eligible to receive benefits include:
- Publicly-traded companies
- Businesses operated by state or local government
- Businesses that own or operate more than 20 locations–whether they are all under the same name or not
- Businesses that received or have a pending application for a grant as part of the “Save our Stages Act”
Need additional support?
Although we can’t offer relief funds, we can help your business succeed by providing affordable, everyday foodservice solutions.
Whether you need to automate your labeling system, secure delivery orders, or keep your POS stocked with rolls and ribbons, we have the solutions you need.
For more information on how we can help you make it through these challenging times, head over to our products page.