March 23, 2021

Restaurant Revitalization Program

By Diane Giordano, Partner, Tax & Business Services

Restaurant Revitalization Program Food & Beverage

The American Rescue Plan (ARP) signed into law by President Biden on March 11 includes within its many provisions a new program aimed at providing pandemic relief to the restaurant industry.

The Restaurant Revitalization Program provides $28.6 billion for restaurants, part of which will be available as grants. The grant program will be administered by the Small Business Association (SBA).

Grant applications are not yet available, but it is expected that the application process will open by the end of March 2021.

There is a broad definition of what types of establishments might be eligible for the program, including:

  • Restaurants;
  • Food stands;
  • Food trucks;
  • Saloons;
  • Inns;
  • Taverns;
  • Bars;
  • Tasting rooms;
  • Brew pubs; and
  • Similar places of business in which the public or patrons assemble for the primary purpose of being served food or drink.

As a federal grant program, applications are to be sent to and reviewed by the SBA, rather than a bank. Once the program opens, applications during the first three weeks will be limited to small businesses (to be defined), to ensure that these businesses are not closed out of the application process.

Grants will be based on the drop in receipts from 2019 to 2020, net of any PPP loan. As we understand so far and for example: If receipts for 2019 were $1 million and receipts for 2020 were $600,000, and a PPP loan received was $150,000, the grant would likely be $250,000 ($400,000 net annual decline less the amount of the PPP loan).

In addition to a grant reduction due to PPP, if a restaurant has a pending application for or has received funding under the Shuttered Venue Operators Grant (SVOG) program as established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, then the restaurant is ineligible for a Restaurant Revitalization grant.

Marcum Observation

While we wait for formal program rollout, it is suggested that companies ensure they have a DUNS number, which will be required for the grant application. If you do not have a DUNS number, consider applying for one now so you are prepared when the grant application process opens.

We also believe there will be a need for a number.

In order to obtain a number, you will first need DUNS #.

Even if these numbers ultimately are not needed for the Restaurant Revitalization grants program, they may be needed for other state and federal programs, so it is advisable to obtain them, just in case.

If you have any questions related to the new filing deadline, contact your Marcum Tax advisor.