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Restaurants hit by COVID-19 can seek share of $28.6 billion SBA fund

May 03, 2021

Restaurants hard-hit by the coronavirus pandemic on Friday can begin registering with the Small Business Administration for a share of a $28.6 billion fund to help them make up some of their lost revenue. The applications can be submitted beginning Monday.

Restaurants and other food establishments can seek funding of up to $10 million per business, though no more than $5 million per location. The money must be spent by 2023 and is designed to help offset their business losses when they were forced to shut down or otherwise curtail their operations due to the pandemic.

The businesses can start setting up their accounts at 9 a.m. Friday at restaurants.sba.gov. They can start submitting applications through those accounts beginning at noon Monday. 

“Restaurants are the core of our neighborhoods and propel economic activity on main streets across the nation,” SBA Administrator Isabella Casillas Guzman said. “They are among the businesses that have been hardest hit and need support to survive this pandemic.”

The Restaurant Revitalization Fund was included, along with $1,400 checks to most Americans, in President Joe Biden’s $1.9 trillion coronavirus stimulus law.

During the first three weeks, the SBA will give priority to applications from restaurants owned by women, veterans, and socially and economically disadvantaged individuals. After that period, all applications will be considered on a first-come, first-served basis.

One-third of the funds, $9.5 billion, will be reserved for smaller businesses, defined as those with no more than $1.5 million in gross receipts in 2019. That includes $500 million for those with receipts of no more than $50,000.

Some small businesses and nonprofit groups hardest hit by the coronavirus pandemic also are now eligible for additional support under a $5 billion Small Business Administration program.

The new round of Economic Injury Disaster Loan assistance, known as Supplemental Targeted Advances, is available for up to 1 million small businesses and nonprofits with no more than 10 employees.

Here’s who can get the money:
Aside from having no more than 10 employees, they must be located in low-income areas and had an economic loss of greater than 50% over an eight-week period since March 2, 2020, compared to the previous year. They can receive $5,000 in grants, meaning the money does not have to be repaid.
The $5,000 grants are addition to the $10,000 many businesses received from earlier Economic Injury Disaster Loan funds.

The SBA will be contacting eligible small businesses.
For more information, businesses can contact the SBA at [email protected] or 1-800-659-2955.

 

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