The U.S. government continues to provide funding for businesses impacted by the COVID-19 pandemic. Some of this funding has been allocated to the food service industry. But who is eligible for SBA restaurant assistance? Hispanos Emprendedores 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; was created to provide resources to help restaurants, bars, and other similar businesses that serve food or drink stay in business.
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.
It should be noted that those who receive the money are not obligated to return it, as long as it is invested in the uses approved by the fund no later than March 11, 2023. The amount approved for this purpose is $28,600 billion, which will remain available until it is exhausted.
Who can use the SBA assistance to restaurants?
Those eligible for this aid, which is processed through the SBA (US Small Business Administration), are businesses that have not permanently closed their doors and where the public gathers with the primary objective of being served food or drink.
This category includes: restaurants, bars, taverns, stalls, food trucks , catering services, bars, lounges, taverns, and establishments that produce alcoholic beverages where customers can sample or purchase products.
As well as similar establishments, where the client meets in order to be served food or drink, snack bars and non-alcoholic beverages. As well as, 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, it must include 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
Eligible companies include C and S type companies, general partnerships, limited liability companies, sole proprietors, self-employed workers, independent contractors and tribal businesses, the latter being those in which at least 51% of the capital belongs 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 an Economic Injury Disaster Loan (EIDL), an EIDL advance, or a reserved EIDL advance.
How and when to apply for SBA assistance to restaurants?
The applicant must submit the application through SBA -recognized point-of-sale partners, directly on the SBA website at https://restaurants.sba.gov , or by calling (844) 279-8898. The applicant must complete the form and provide the required information according to their business type.
They will announce the time when applications will open via email or on SBA social media.
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