February 22, 2021 — Yesterday, Senate Majority Leader Chuck Schumer joined the Executive Director of the New York City Hospitality Alliance Andrew Rigie and owner of Dirt Candy Amanda Cohen at a press conference to enact a dedicated Restaurant Relief Fund to help save countless restaurants, bars, and jobs.
Below is a summary of the Restaurant Revitalization Fund that will be included in the American Rescue Package that Congress is expected to pass in early March.
- The measure would provide $25 billion for a Restaurant Revitalization Fund to be administered by the SBA.
- Eligible recipients would include restaurants, bars, food trucks, and caterers, including businesses in airport terminals and tribally owned entities.
- Disqualified businesses would include those run by the state or local governments, companies that manage more than 20 locations including affiliates, live venues, seeking grants under the year-end Covid-19 relief package, and publicly traded companies.
For 60 days following the measure’s enactment, $5 billion would be set for eligible entities with gross revenue of $500,000 or less in 2019. The SBA would also have to prioritize awards for small businesses owned by women, veterans, and socially or economically disadvantaged individuals during an initial 21-day award period.
Other grant funds would be awarded on a first-come, first-serve basis. Grant amounts would cover the difference between an entity’s revenue in 2020 compared with 2019. Awards would be reduced by amounts received through the Paycheck Protection Program. Aggregate awards made to an entity and its affiliates couldn’t exceed $10 million and would be limited to $5 million per location. Eligible expenses generally would include payroll costs, mortgage and rent payments, supplies, normal food and beverage costs, and paid sick leave. Grants couldn’t be used to pay fees exceeding of certain private funds with an ownership stake. Funds can be used through December 31, or a date set by the SBA that’s no later than two years after the measure’s enactment.
Senator Schumer’s detailed plans for the restaurant relief fund can be viewed in the press release, here.
DHC’s Washington, D.C. office is working with Senate Majority Leader Schumer and Members of Congress on the American Rescue Package and will continue to provide updates as the legislation moves forward.