RESTAURANT REVITALIZATION GRANTS
(This is not a Northern Bank program.)
Under the American Rescue Plan Act of 2021, the SBA is authorized to
make grants to restaurants, bars, and other food and drink businesses.
Key points of the program include:
- Grant amount is determined by the drop in gross receipts from
2019 to 2020, with a maximum of $10 million per entity (aggregated with
affiliates) and $5 million per physical location.
- Program is not open to entities that, as of March 13, 2020, own
or operate, together with affiliated businesses, more than 20 locations.
- Applicant cannot apply for or receive a Shuttered Venue Operator Grant.
- Eligible entities can obtain PPP loans, but any first or second
draw PPP loan proceeds offset the drop in gross receipts that is used to
calculate the grant amount.
- Funds must be used by December 31, 2021 on eligible expenses,
including payroll, mortgage payments, rent, utilities, maintenance
expenses, supplies, and operational expenses.
- Unused funds must be returned.
- Applicants must submit a completed SBA Form 3172, IRS Form 4506-T, and documents demonstrating gross receipts and, if applicable, eligible expenses (tax returns and related forms, banks statements, financial statements, or point-of-sale reports).
- Franchisees not listed on the SBA’s Franchise Directory may need to submit additional documents.
- Grants are being offered on a first-come, first-served basis,
with the exception of a 21-day priority period designated for small
businesses controlled and owned by women or veterans, and for socially
and economically disadvantaged small businesses, set
asides for businesses with 2019 gross receipts of $1,500,000 or less.
The SBA established a website for the Program, which includes the Program Guide and a sample Restaurant Revitalization Funding Application.
When the SBA opens the Program, eligible entities can apply through the SBA’s online application portal or through an SBA Point-of-Sale Restaurant Partner (a technology company that provides software, hardware, and payment services to the restaurant industry).