Think about the owner of your favorite restaurant, bar, bakery or catering business in Green County. They are busy people, right? If you have a favorite food business that you love, please let them know about the Restaurant Revitalization Fund. You may have heard about this opportunity, and we want to make sure that every food business in Green County is aware of this program and can apply.
The $28.6 billion authorized by the March federal stimulus bill will go fast, so establishments in need of help should gather documents quickly because the fund will start taking applications on Monday, May 3 for grants designed to equal a business’ pandemic losses.
The first 21 days of the program will prioritize businesses run by women, veterans, or people from economically and socially disadvantaged groups. After that, everyone else will be considered in the order in which they were received. That is why it is so important to reach out to every food business that is eligible and encourage them to gather the necessary documentation to apply more quickly.
Unlike the Paycheck Protection Program (PPP), which required businesses to spend most of the funds they received on employee payrolls, these revitalization grants have fewer restrictions. The PPP, for example, denied funding to businesses that opened after the pandemic began. The restaurant fund, by contrast, covers nearly everyone, including businesses that haven’t even opened yet. Funds can be used until March 2023.
What types of businesses are eligible?
Restaurants
Bakeries
Food trucks, food stands, food carts, snack bars
Caterers
Saloons, inns, taverns, bars, brewpubs, taprooms, wine tasting spots, distilleries
(Bakeries, inns, brewpubs, distilleries, and wineries must have onsite sales to the public that total at least 33 percent of gross receipts.)
Establishments must also certify that “current economic uncertainty makes this funding request necessary to support the ongoing or anticipated operations.”
What can restaurants spend the funds on?
According to the March stimulus bill, grant funds can be spent on payroll (including health care), rent and utilities, mortgage obligations (including principal and interest), outdoor dining builds and other construction costs, supplier costs, operational expenses, paid sick leave, and any other expenses that are “determined to be essential to maintaining the eligible entity.” Restaurants will also be able to use funds to pay off business-related credit card expenses, third-party delivery commissions, and unforgiven portions of PPP loans.
The inclusion of mortgage principal is going to be very important because the PPP only allowed for payment of mortgage interest. That means bars and restaurants can use the grant funds to make their full regular monthly payments on mortgages and other business debts. Please note that the money cannot be used to pay off or make large, unusual payments on loans. Small businesses that maxed out their credit cards will be able to take care of that debt as well.
The Bottom Line
If you run a bar, restaurant, bakery, food truck, or catering business in need of help, you should start gathering documentation now and apply the first day you’re eligible. The money will go fast. The Small Business Administration has a call center supporting 10 languages at 844-279-8898. There is also information about the Restaurant Revitalization Fund available in 25 languages at sba.gov/restaurants. With advance notice, the SBDC consultants can arrange for translation services to assist in additional languages.
Questions? We can help!
Please remember our Small Business Development Center business consultants are always available to Green County businesses with free, confidential assistance to fill out applications and help you explore how you will adapt your business for the future. Contact business consultants Kristi Smith or Jason Schleip directly at swwisbdc@lists.wisconsin.edu and sign up for their assistance here: tinyurl.com/swwisbdc. With advance notice, our business consultants can arrange for translation services to assist in additional languages.
— Cara Carper is executive director at Green County Development Corporation. She can be reached at cara.gcdc@tds.net.
