LUBBOCK, Texas (KCBD) - Restaurants have been hit the hardest by the pandemic this year and the Small Business Administration is granting relief money that would replenish the difference of 2020 to 2019 revenue.
Its called the Restaurant Revitalization Fund which provides emergency assistance for eligible bars, restaurants and other businesses.
Eligible entities who have experienced pandemic-related revenue loss include:
- Food stands, food trucks, food carts
- Bars, saloons, lounges, taverns
- Snack and nonalcoholic beverage bars
- Bakeries (onsite sales to the public comprise at least 33% of gross receipts)
- Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts)
- Breweries and/or microbreweries (onsite sales to the public comprise at least 33% of gross receipts)
- Wineries and distilleries (onsite sales to the public comprise at least 33% of gross receipts)
- Inns (onsite sales of food and beverage to the public comprise at least 33% of gross receipts)
- Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products
This program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.
Chris Berry with the Texas Restaurant Association said this funding has less restrictions than the Payroll Protection Program.
“It makes up that gap of that revenue or that cash flow that you’ve had to buy the equipment and to buy your groceries and to keep paying your staff and all those things so let’s it’s tremendously important,” Berry said.
Austin Payne walks owners through the application process. Here is what you’re going to need.
“You’re going to need a 2019 tax return; you’ll want profit and loss statements for 2020. At least if you have a 2020 tax return, that is even better. But they don’t want that kind of baseline. Okay, what did you do in 2020, compared to 2019, that’s kind of the biggest thing,” Payne said.
Collect Tax Information
- IRS Form 4506-T, completed and signed by Applicant. Completion of this form digitally on the SBA Grant Platform will satisfy this requirement.
- Collect Gross Receipts Documentation
- Any of the following documents demonstrating gross receipts and, if applicable, eligible expenses:
- Business tax returns (IRS Form 1120 or IRS Form 1120-S);
- IRS Form1040 Schedule C; IRS Form 1040 Schedule F;
- For a partnership: partnership’s IRS Form 1065 (including K-1s);
- Bank statements;
- Externally or internally prepared financial statements such as Income Statements or Profit and Loss Statements;
- Point of sale report(s), including IRS Form 1099-K.
For the first three weeks, Payne said SBA is prioritizing owners who are women, veterans or those who are historically disadvantaged.
“So if it’s if it’s husband, wife, and it’s 5050, it’s not going to qualify, it has to be that majority. Female owned, in that case,” Payne said.