SBA Officially Closes Restaurant Revitalization Fund

SBA Officially Closes Restaurant Revitalization Fund

The U.S. Small Business Administration (SBA) announced the closure of the Restaurant Revitalization Fund (RRF) in July after awarding the program’s full $28.6 billion appropriation to more than 100,000 restaurants, bars, and other businesses that provide on-site food and drink.

Congress created the RRF to provide relief to a sector of the economy especially hard-hit by government-imposed shutdowns and other restrictions related to the COVID-19 pandemic. Demand for the funds far outstripped the supply, with restaurants and other eligible businesses submitting more than 278,000 applications seeking more than $72.2 billion in funding.

In the end, restaurants and other eligible businesses owned by members of prioritized groups received about $18 billion in grants, broken down as follows:

  • Women-owned businesses, $7.5 billion
  • Veteran-owned businesses, $1 billion
  • Social and economically disadvantaged-owned businesses, $6.7 billion
  • Businesses owned by representatives of multiple underserved populations, $2.8 billion

The remainder of the $28.6 billion ($10.6 billion) was awarded to eligible applicants not identified as part of an underserved group.
The average size of grant awards was $283,000, broken down as follows:

  • $50,000 and under, 2.2%
  • $50,000–$100,000, 4.9%
  • $100,000–$150,000, 5.6%
  • $150,000–$350,000, 21.2%
  • $350,000–$1 million, 27.2%
  • $1 million–$2 million, 16.4%
  • $2 million–$5 million, 18%
  • $5 million–$10 million, 4.6%

Under the RRF, food and beverage providers could apply for grants equal to their pandemic-related revenue loss, up to $10 million per business and no more than $5 million per physical location. The funds could be used for eligible expenses, such as payroll and rent.

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