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Frequently Asked Questions About the Independent Restaurant and Bar Grant Program

03.23.2021

Which businesses are eligible to receive a grant through this program?

All food service or drinking establishments, including restaurants, caterers, brewpubs, food stands, food trucks, taprooms, and tasting rooms, that are not part of an affiliated group with more than 20 locations.

Which businesses are NOT eligible?

  • Businesses part of an affiliated group over 20 locations are not eligible, even if the businesses operate under different names.
  • Businesses that have pending applications under the Shuttered Venue Operators Grant program are not eligible.
  • State or local government-operated businesses are not eligible.
  • Publicly traded businesses are not eligible.

How do businesses calculate the amount of grant funding they can expect to receive from the SBA?

Do businesses use gross or net revenue to calculator grant amounts?

Businesses use gross revenue.

Do my Employee Retention Tax Credit (ERTC) or EIDL Loan affect total grant amounts?

No, only PPP funds are deducted from the total. Using EIDL loans or the Employee Retention Credit does not disqualify businesses from participating in the program.

What is the maximum grant amount?

The maximum grant amount is $5 million per individual restaurant and $10 million per restaurant group.

Are the grants treated as taxable income by the IRS?

No.

What are the expenses that are eligible for the grant?

Payroll and benefits (not including employee compensation exceeding $100,000/year), mortgage (no prepayment), rent (no prepayment), utilities, maintenance, supplies (including protective equipment and cleaning materials), food, operational expenses, covered supplier costs as defined by the SBA under the Second Draw PPP program, sick leave, and any other expenses deemed essential by the Administrator.

How long does the coverage period last for this program?

Grants can be spent on eligible expenses from 2/15/20 through 12/31/21 and the Administrator may extend the period through two years from enactment if conditions warrant.

What if I cannot use my full grant on eligible expenses?

Any funds not used (or not used on eligible expenses) must be returned to the government.

What happens if the $28.6 Billion runs out?

It is our hope that Congress will refund the grant pool when it is empty but there is no guarantee that they will.

Which businesses will receive priority from the SBA?

$5 billion of the $28.6 billion total is reserved for restaurants with less than $500,000 in gross receipts in 2019 for the first 60 days of the program. The first 21 days of funds will only be made available to restaurants women or veteran-owned, or socially and economically disadvantaged businesses.

Should I take the Second Draw PPP or wait for the Restaurant Revitalization Fund grant?

Due to demand, there is no guarantee that you will be able to receive a Restaurant Revitalization Fund grant, so it is our recommendation that you exhaust all federal programs that are available to restaurants while you are eligible.

A full overview of the Restaurant Revitalization Fund can be found here.

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