Restaurant Help On The Way
The new RESTAURANTS ACT is included in the American Rescue Plane Act of 2021, which was signed into law on March 11, 2021. The amount of the grant to an eligible is restaurant is equal to the revenues during 2020 less the revenue during 2019 less any amounts received from the Paycheck protection Program loans. The funds are once again tax free and the expenses are deductible.
Eligible Entities: Restaurants, food stand, food truck, food truck. food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting room jtaproom, licensed facility, or premises of a beverage alcohol producer where the public may taste, sample, or purchase products, or other similar place of business where the primary purpose is serving food or drink.
Covered Period: The businesses are permitted to use the funds to cover eligible expenses from February 15, 2020 through December 31, 2021 or a date later determined by the SBA.
Covered Expenses: Payroll Costs, Rent Payments, Utilities, Mortgage Payment (Principal and Interest), PPE and cleaning materials, Maintenace Expenses, Paid Sick Leave, and Food and Beverage Expenses.
The program isn't open quite yet but restaurants will be able to submit applications directly through the SBA's website Small Business Administration (sba.gov).
Special rules apply to business not in operation for all of 2019 or started busines in 2020. Also, restaurants not in operation at the time of the application can still receive grant funding but only if it has eligible expenses.
Please contact Angel or Colleen at Blackbird Accounting PLLC if you would would like assistance with your application or with any of your other tax and accoutning needs.
