Everything you need to know about the American Rescue Plan Act and the Restaurant Revitalization Fund.
On March 11, 2021, President Biden signed into law the American Rescue Plan Act, a $1.9 trillion coronavirus relief bill that allocates new funds and tax credits to help struggling small businesses. This new bill includes targeted aid for restaurants in the form of grants, additional aid, and an expansion of existing credits such as the Employee Retention Tax Credit.
During the March 12 Small Business Update, Jeanette Mulvey, Content Director at CO—, spoke with the National Restaurant Association Executive Vice President Sean Kennedy and U.S. Chamber of Commerce Executive Vice President and Chief Policy Officer Neil Bradley about how the American Rescue Plan can help small businesses. Kennedy and Bradley also answered audience questions and spoke about updates to the Paycheck Protection Program and upcoming federal grant programs.
Here are some of the biggest takeaways from the conversation:
Billions in new grants specifically for restaurants
One of the most significant recent developments in the American Rescue Plan is the creation of the Restaurant Revitalization Fund (RRF). This new $28.6 billion grant program will specifically target hard-hit restaurants and bars, with restaurants able to apply for grants based on lost gross revenue between 2019 and 2020. The maximum grant size will be $5 million for restaurants and $10 million for restaurant groups.