Today, President Biden signed the American Rescue Plan Act into law creating the $28.6 billion Restaurant Revitalization Fund (RRF), the most important recovery tool for the industry to date.
The RRF will create a new federal program for restaurant owners with 20 or fewer locations. Operators can apply for tax-free grants of up to $5 million per location, or up to $10 million for multi-location operations. The grant amount is determined by subtracting 2020 sales from 2019 revenues. Funds from the grants can be spent on a wider range of expenses than previous relief programs, including mortgages or rent, utilities, supplies, food and beverage inventory, payroll, and operational expenses. $5 billion of the fund will be set aside for restaurants with gross receipts under $500,000 and, for the first three weeks of the application period, the Small Business Administration will prioritize awarding grants for women, veteran, or socially and economically disadvantaged-owned businesses.
Register for the RRF Webinar next Monday, March 15 at 11:00 a.m. MT