Posted 3 months ago - by

$28.6 Billion in Relief Will be Available for Restaurants- Here’s What We Know

The American Rescue Plan Act of 2021 (ARPA) was passed in early March of 2021 and is the third relief package to be passed in response to the on-going pandemic and is the second-largest stimulus bill in United States history. The $1.9 trillion act includes another round of stimulus checks, student loan forgiveness, local government aid, and more. It also includes $28.6 billion in grant money specifically for eligible restaurants as part of the Restaurant Revitalization Fund (RRF).

The RRF will be overseen and administered by the U.S. Small Business Administration (SBA). Eligible entities for this program include restaurants, food trucks, bars, brewpubs, and more.

Some additional requirements for applicant eligibility include:

  • They do not own or operate more than 20 units.
  • They are not publicly traded companies.
  • For multi-brand operators, the 20-unit cap applies across brands.


If the applicant is determined to be eligible, they can apply to receive a grant of up to $10 million. The amount of the grant received will not exceed the pandemic-related revenue loss that the applicant experienced. This can be determined by reviewing the applicant’s 2019 gross receipts and subtracting their 2020 gross receipts. Additionally, a modified calculation will be applied to those applicants that were not in operation for all of 2019 or those that opened for business AFTER January 1, 2021.

The funds may be used for:

  • Payroll expenses
  • Utilities
  • Rent
  • Supplies
  • Maintenance
  • Paid sick leave
  • Outdoor seating construction
  • Personal Protective Equipment
  • Cleaning materials
  • And any other expense that the SBA deems to be essential.


The SBA will be prioritizing grants to eligible applicants that are small businesses owned and women-owned, veterans, and the socially/economically disadvantaged, first. Similarly, $5 billion of the total included for the RRF will be reserved for applicants that have less than $500,000 in gross receipts for 2019.

The SBA has not issued any official rules or additional guidance regarding the application yet. They have clarified that any funds left over after the first 60 days of grant eligibility will be opened to larger restaurants and food-related businesses. However, the details on those procedures and stipulations also remain unclear.

Is there anything Payroll Systems can help you with as you accommodate rapid legislation changes? Reach out and talk to us about the easy-to-scale solutions you need for your business.

Related Posts

New Employee Onboarding Checklist for the Construction Industry

The onboarding process is the critical first step in getting a new employee situated and ready to work However, in industries much like construction, employees don’t often start their first day at...


Los Angeles County Launches New Commuter Tax Benefit for 2021

More and more offices that were fully or partially shut down in 2020 are opening again This is clear If your employees are starting back on their commute for the first time in a year, perhaps a new...


Why Talent Pool Management is Important and 5 Ways to Get Started

Every organization has its own unique way of hiring new talent and with competition rising, many have started to look for ways to optimize and expedite their talent acquisition processes One way to...


5 Ways Your Office Can Be More Environmentally Friendly

As we get deeper into the 2021 year, we have seen COVID-related restrictions lifted for various industries While some have shifted over to a hybrid work model which continues to involve some degree...


The Difference Between a Social Security Number (SSN) and An Individual Tax Identification Number (ITIN)

ITINs and SSNs can look very similar and are often mistaken as interchangeable Although they both act as valid tax identification numbers when filing a tax return in the US, they cannot be used...


DOL Issues Partial Delay on Tip-Sharing Rule

The Department of Labor issued a final rule on December 30, 2020, that clarified tip credit issues under the Fair Labor Standards Act (FLSA) related to tip ownership and eliminated the 80/20 rule...


Leave a Reply

Your email address will not be published. Required fields are marked *

This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business. You can also contact Payroll Systems to inquire about our HR support services.