The US government continues to provide funding for businesses that have been affected by the COVID-19 pandemic. Some of these have been destined for the gastronomy sector. But Who can use the SBA help to restaurants? Hispanic Entrepreneurs brings you everything you need to know about this benefit.
What is the aid program about?
The Restaurant Revitalization Fund (RRF) established by the American Rescue Plan Act. It was created to provide resources to help restaurants, bars, and other similar businesses that serve drinks or food stay up and running.
It was established that the program will deliver capital equivalent to its loss of income due to covid-19. But up to a maximum of $ 10 million per company and up to $ XNUMX million for each physical location.
Notably those who receive the money are not obliged to return it, as long as it is invested in the approved uses; for the fund no later than March 11, 2023. The amount approved for this is $ 28,600 billion that will remain available until they are exhausted.
Who can use SBA restaurant assistance?
Those who can opt for this aid that is processed through the SBA (US Small Business Administration) are businesses that have not closed their doors permanently, and in which the public gathers with the main objective of being served food or drink.
This line includes restaurants, bars, taverns, stalls, food trucks, catering services, bars, lounges, taverns, local producers of alcoholic beverages where the customer can taste or buy products.
As well as similar establishments where the client meets in order to be served food or drink; snack bars and non-alcoholic beverages. In addition to, bakeries, beer bars, tasting rooms, breweries, microbreweries, taprooms, wineries, distilleries and inns.
It is noteworthy that to be eligible are bakeries, beer bars, tasting rooms, taprooms, breweries, microbreweries, wineries and distilleries; They must submit documents proving that their sales were at least 33% of 2019 gross revenue just like the posadas.
Meanwhile, for companies that opened in 2020, or that have not yet opened the original business model, they must contemplate at least 33% of gross revenue in sales to the public.
Businesses that are located at an airport or that operate independently, that is, those that have their own tax number within another company, are also able to request the benefit. For example a restaurant that is inside a hotel.
Characteristics of eligible businesses
Type C and S companies, general partnerships, limited liability companies, sole proprietors, self-employed workers, independent contractors and tribal companies, the latter being those with at least 51% of the capital belonging to an indigenous tribe.
With valid EIN, SSN and ITIN, that is in an open, temporarily closed, mild opening operating state, with expenses incurred as of March 11, 2021. Those who have not filed for bankruptcy or operating under the approved reorganization plan (Chapter 11, 12, 13 bankruptcies).
Also those who did not apply for the PPP Loan, those who have already received a PPP loan, those who have a pending application, some franchises. Those who were denied the grant for closed premises operators, who did not apply, applicants for funds greater than or equal to $ 1000,
The applicant who has received a economic damage disaster loan (EIDL), an EIDL Advance, or a Reserved EIDL Advance.
How and when to apply for SBA assistance to restaurants?
The interested party must submit the application through point of sale associates recognized by the SBA (US Small Business Administration). Directly on the SBA portal, https://restaurants.sba.gov or through (844) 279-8898. You have to fill out the form and record the requirements according to the type of business.
They will announce the time when applications will open via email or on SBA social media.
