The US Small Business Administration is ending the Restaurant Revitalization Fund program, signed into law by President Joe Biden as part of the American Rescue Plan.
With the closure of the RRF, the SBA will continue deliver economic aid to help small businesses recover with critical relief through programs such as the Economic Injury Disaster Loans [EIDL], Targeted EIDL Advance and Supplemental Targeted Advance and the Community Navigator Program.
As of June 30, 2021, the RRF program received more than 278,000 submitted eligible applications representing over $72.2 billion in requested funds, and approximately 101,000 applicants have been approved to restaurants, bars and other restaurant-type businesses. Underserved populations received approximately $18 billion in grant awards including :
- Women-Owned businesses ~ $7.5 billion
- Veteran-Owned businesses ~ $1 billion
- Social and economically disadvantaged-Owned businesses ~ $6.7 billion
- Businesses Owned by Representatives of Multiple Underserved Populations ~ $2.8 billion
The remainder of the $28.6 billion was awarded to eligible applicants not identified as part of an underserved group.
The average size of grant awards to applicants was $283,000:
- 2.2 percent of approved dollars for $50K and Under
- 4.9 percent of approved dollars for $50K – $100K
- 5.6 percent of approved dollars for $100K – $150K
- 21.2 percent of approved dollars for $150K – $350K
- 27.2 percent of approved dollars for $350K – $1M
- 16.4 percent of approved dollars for $1M – $2M
- 18.0 percent of approved dollars for $2M – $5M
- 4.6 percent of approved dollars for $5M – $10M
As outlined by Congress, restaurants and bars were eligible for economic aid equal to their pandemic-related revenue loss, with a cap of $10 million per business and $5 million per location. The funds were available for certain eligible uses, like payroll and rent.
The Restaurant Revitalization Fund application platform will remain open for the next two weeks to allow applicants to check their status, address payment corrections, or ask questions. The SBA will disable access to the platform on July 14, 2021.
For additional information on SBA’s Economic Relief programs, visit COVID-19 relief options (sba.gov).
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