How OrderUp can help you navigate the Restaurant Revitalization Grant
President Biden signed a monumental $1.9 trillion dollar Covid relief bill on Thursday, which includes $28.6 billion in direct grants to restaurants. Over the coming weeks, restaurants will be able to apply for the Restaurant Revitalization Grant.
These funds will be crucial to restaurants and their employees coming out of a year that saw the strongest drop in GDP since 1946.
OrderUp wants be there every step of the way, helping you navigate the grants, loans, tax credits to help you get the most out the available resources.
First and foremost – any transaction fees associated with OrderUp can be covered by the Restaurant Revitalization Grant. This was already the only expense associated with using our free contactless ordering & payment platform.
Here’s a quick message from from our CEO (and academy award winning), Chris Gilpin:
If you have any questions or would like any help in the application process – Our team would be more than happy to help. You can book a meeting here.
Below is a quick overview of the Restaurant Revitalization Grant.
Restaurant Revitalization Fund
The Restaurant Revitalization Fund is a $26.8 billion grant program for restaurants and other foodservice businesses that have been affected by covid-19 related shutdowns.
Restaurants can apply for a total of $10 million — or $5 million per physical location — based on their revenue losses during the pandemic. Since it’s a grant, you don’t have to pay it back or apply for forgiveness, unlike previous coronavirus assistance programs.
Who Can Apply For The Grant?
Just about every food-service-related restaurant you’d assume. Here’s the full list:
- Food stands
- Food trucks
- Food carts
- Tasting rooms
- Tap rooms
If you want to double-check if you qualify, here’s the copy-pasted version from section 5003 of the American Rescue Plan act of 2021:
“(A)means a 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;”
Even if your restaurant has already received a loan through the Paycheck Protection Program (PPP) or the Economic Injury Disaster Loan (EIDL) program, you can still qualify for this grant. But a PPP loan will reduce how much you’re eligible to receive.
Who doesn’t qualify for the grant?
Even if your business falls into one of the eligible categories, the following types of businesses can’t qualify for the Restaurant Revitalization Fund:
- State or local government-operated businesses
- Businesses owned or operated with more than 20 locations as of March 13, 2020
- Businesses that received a shuttered venue grant
- Public companies
Calculating how much you qualify for
The maximum amount for a grant is $10 million, how much you receive depends on the revenue your business lost due to the coronavirus outbreak and if it received a PPP loan.
Businesses that were established before January 1, 2019, can calculate their grant amount by subtracting your 2020 gross receipts from your 2019 gross receipts.
Businesses that were established during 2019 can receive a grant equal to the difference between:
- Average monthly 2019 gross receipts, multiplied by 12
- Average monthly 2020 gross receipts, multiplied by 12
The bill also states that $5 billion is reserved strictly for businesses whose gross receipts were less than $500,000 in 2019.
Restaurants that were established on or after January 1, 2020, can receive a grant equal to eligible payroll expenses, less gross receipts from that year.
Alternatively, if your restaurant has unique or unforeseen circumstances, a restaurant operator can create their own formula, as stated in section 5003 of the act:
(ii) an amount based on a formula determined by the Administrator;
We can expect to find out more information in the coming weeks after the bill has passed.
The Small Business Administration (SBA) might also release another formula for businesses established in 2019 or 2020 once the program is up and running. And if your business received a First or Second Draw PPP loan, you’re required to subtract those amounts from the grant.
How to apply for the RRG
The Restaurant Revitalization Fund will be available through the SBA, though it hasn’t yet released an application or set up a portal where you can apply. However, specific members of congress have said it will be “within weeks, not months”. With that said, the first 21 days of applications being open will be reserved for:
- Women-owned businesses
- Veteran-owned businesses
- Socially or economically disadvantaged businesses
After the first 21 days, all eligible businesses have until December 31st to apply for this grant program.
How can you use these funds?
You can use the funds to cover any of the following types of expenses that your business incurred between February 15, 2020, and December 31, 2021. This means you can also retroactively use them for charges or expenses incurred after February 15, 2020.
- Payroll expenses
- Mortgage payments, including principal and interest
- Construction of an outdoor seating area
- Maintenance of walls, floors, fixtures, furniture, deck surfaces and equipment
- Supplies — including personal protective equipment and cleaning supplies
- Food and beverage expenses you would have incurred under normal circumstances
- Paid sick leave
- Operating expenses
- Supplier costs
The American Rescue Plan Act also leaves room for the SBA to add expenses that are covered by this grant program. If you have any money left over after covering your eligible expenses, you’re required to return the remaining funds.
If you’re an existing OrderUp partner – simply get in contact with us and get started with contactless order & pay. Every single order and payment that is made through an OrderUp menu will be covered by either the grant program or Paycheck Protection Program.
If you’re a business looking to make the most out of the Restaurant Revitalization Grant, let’s connect!
We support over 60 restaurants across Canada and the United States. In every sub-industry from full-service, fine-dining, to QSR and Food Trucks. Let’s collaborate and make this year the best one yet.