As we previously blogged, the American Rescue Plan was signed into law on March 11, 2021. In addition to making important changes to the FFCRA, the American Rescue Plan also established the “Restaurant Revitalization Grant” (RRG) program. Under the RRG program, $28.6 billion has been set aside for grants to help restaurants impacted by the pandemic.
Who Is Eligible?
“Eligible entities” under the RRG program include:
- food stands, carts, and trucks
- bars, lounges, and taverns
- tasting rooms and taprooms
- “other licensed facilities or premises of an alcoholic beverage producer where the public may taste, sample, or purchase products”
- “other similar places of business in which the public or patrons assemble for the primary purpose of serving food or drink.”
The following businesses are not eligible
- state or local government-operated businesses
- entities that, as of March 13, 2020, own or operate more than 20 locations
- entities that have a pending application for or have received a Shuttered Venue Operators Grant; and
- publicly-traded companies.
How Much Can I Get?
Grants are expected to be equal to the difference between recipients 2019 and 2020 gross receipts. However, grants will be limited to $10 million per, with a cap of $5 million per physical location. RRG grants will be reduced by the amount of any PPP funds the recipients have already received.
How Can I Spend RRG Grants?
Eligible uses include:
- Principal and interest payments on mortgages
- Maintenance expenses
- Food and beverage expenses
- Covered supplier costs
- Operational expenses
- Paid sick leave
- Any other expenses the SBA determines to be essential to maintaining the eligible entity.