The period opened Monday for food establishments such as restaurants and food trucks, as well as bars to apply for up to $10 million under the Biden Administration’s Restaurant Revitalization Fund (RRF).
The RRF, administered by the Small Business Administration (SBA), will distribute some $28.6 billion (up to $10 million per company and $5 million per location) to eligible applicants.
Bar, restaurant and food truck owners are eligible to receive the funds.
Owners of bars, restaurants, food trucks and other establishments may apply for the funds to help cover losses they have experienced during the pandemic.
The minimum award per business is $1,000.
Recipients of the Restaurant Revitalization Fund do not have to repay the money.
Americans who are credited with the funds will not have to repay the money as long as they use it for its intended purpose no later than March 11, 2023.
Possible uses of the Restaurant Revitalization Fund money
Establishment owners can use the funds for payroll, mortgages, rent payments, utility payments, as well as for investment in maintenance and construction of outdoor customer spaces.
SBA will prioritize applications from small businesses owned by women, veterans and economically and socially disadvantaged individuals for the first 21 days of the program, the White House said.
After that initial period, applications will be considered on a first-come, first-served basis.
“Families of all races, ethnicities, nationalities, build their dreams around family restaurants,” President Joe Biden said from the White House about the program’s approach.
“Some parts of our economy need special help – at the top of the list are restaurants, which were among the first and hardest hit by the pandemic,” he added.
The Restaurant Revitalization Fund (RRF) was established as part of the third stimulus bill passed under the Biden Administration in March worth a total of $1.9 billion.
Despite the Biden Administration’s effort, organizations such as the Independent Restaurant Coalition believe the initiative is insufficient to deal with the economic crisis in the restaurant industry.
The coalition, which formed during the pandemic to advocate for the needs of independent restaurants and bars nationwide, has been pushing for a much larger amount for this sector or $120 billion.
Spokespeople for the group told CNN that the pandemic has cost restaurants and bars more than $219 billion, and they have received less than $24 billion in the first round of loans under the Paycheck Protection Program (PPP).
The White House press release on Wednesday said that in the first two days of the open period, 186,200 owners of these businesses in all 50 states, Washington D.C. and the five U.S. territories applied for assistance.
For more information on how to apply and eligibility requirements, you can visit the RRF program website.