Individuals and their families became the focus of the most-recent governmental stimulus package. However, there are several key business incentives that should be noted depending on your industry and need.
Restaurant Revitalization Grant
Congress has directed the SBA to administer a new grant to the targeted restaurant industry who have been severely impacted by the COVID-19 pandemic and mandatory shutdowns.
Eligible entities include restaurant, food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting room, taproom, licensed facility or premise of a beverage alcohol producer where the public may taste, sample, or purchase products, or other similar place of business in which the public or patrons assemble for the primary purpose of being served food or drink.
Excluded entities include those who have received the live-venue grant or have an application pending for such a grant under Section 324 of Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act, as well as those types of entities stated above with more than 20 locations, regardless of whether those locations do business under the same or multiple names. Publicly-traded companies are also excluded.
Eligible entities must make a good-faith certification, similar to the PPP, that “the uncertainty of current economic conditions makes necessary the grant request to support the ongoing operations of the eligible entity”.
The aggregate amount of grants made to an eligible entity and any affiliated businesses of the eligible entity are capped at $10,000,000, and limited to $5,000,000 per physical location of the eligible entity. Grant amounts will be equal to the eligible entity(ies)’s “pandemic-related revenue loss” (PRRL).
For those entities who were in operation for the full calendar years of 2019 and 2020, the “pandemic-related revenue loss” is, to the extent the result is greater than zero:
Annual 2019 Gross Receipts – Annual 2020 Gross Receipts = PRRL
For example, if a restaurant had 2019 gross receipts of $5 million, and 2020 gross receipts of $2 million, the PRRL (and therefore the amount of the grant) would be $3 million.