Registration for Restaurant Revitalization Act Grants Begins April 30
Washington, D.C. (April 29, 2021) - As described in detail in our previous alert, the Small Business Administration (SBA) is moving forward to implement an application process for tax-free COVID-19 relief grants to restaurants, bars, and food-service establishments. Previously, the SBA made available a sample application form and information on the program. In the latest developments, the SBA portal will open at 9:00 a.m. ET on April 30, 2021 for applicants to register, and applications will be accepted starting Monday, May 3, at noon.
For the first 21 days, only applications from priority groups will be processed, but after that, forms from all others will be considered in the order in which they were received. Priority groups include restaurants, bars, and other food-serving establishments that are owned 51% or more by women, veterans, or socially and economically disadvantaged individuals.
Under SBA guidelines, “socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities.” Additionally, “[e]conomically disadvantaged individuals are those socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area who are not socially disadvantaged.”
While it is possible that Congress will vote to expand funding of this program, for now the appropriated $28.6 million will not cover all establishments that will seek relief, and time is of the essence in completing and submitting applications. As with other federal government COVID-19 relief programs, the ground rules and application form can be complicated to apply in real-world business circumstances. Lewis Brisbois’ team is experienced in working with clients to maximize benefits and ensure compliance with all applicable legal requirements.
For more information on program, contact the author of this post. Visit our COVID-19 Response Resource Center for more alerts on the many government programs created in response to the pandemic.
Jane C. Luxton, Managing Partner - Washington, D.C.
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