As discussed in our March 12, 2021 Client Alert, the recent stimulus earmarks a $28.6 billion Restaurant Revitalization Fund to assist struggling restaurants, bars, caterers, breweries, tasting rooms, food trucks, and groups with 20 or fewer locations (“Restaurants”).
Restaurants will need to apply for a Restaurant Revitalization Fund grant via the U.S. Small Business Association (“SBA”). While we expect it will be at least a few more weeks before the SBA goes live with a grant application, there is no timeline and the SBA could make an application available at any time.
To ensure your Restaurant is ready to submit an application once the SBA makes one available, we recommend taking the following proactive steps:
- Register to receive money from the U.S. government.
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Apply for a Data Universal Numbering System (“DUNS”) number for each physical location of your business here.
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Create an account with the U.S. government’s System for Award Management (SAM) and register your business here.
- Prepare a notarized letter designating an authorized individual as the “entity administrator” that will have access to SAM on behalf of the business.
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A template letter for a business registering a single entity can be found here.
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A template letter for a business registering multiple entities can be found here.
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Additional information on the notarized letter requirement can be found here.
- Gather documentation to support the Restaurant’s gross receipts in 2019 and 2020, along with the amount of any Paycheck Protection Program loan received and calculate the Restaurant’s maximum grant amount.
- Determine the amount of any qualifying expenses incurred to date and anticipated qualifying expenses through the end of 2021 to inform the amount of the grant your Restaurant should apply for (up to the maximum of $5 million for a single Restaurant or $5 million per location and $10 million cumulatively for a Restaurant group).
Taking the above steps will put you in the best position to apply for a grant as soon as applications are available.
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If you have questions or would like additional information, please contact any of our Labor & Employment attorneys or the primary EGS attorney with whom you work.
