On Wednesday, March 10, 2021 Congress passed a new stimulus relief package worth $1.9 Trillion. According to reports $28.6 billion will be designated to help bars and restaurants that have been impacted by shutdowns. Venues that were forced to shut down due to Covid-19 will also be included in this relief package.
Who is eligible to apply?
Any 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.
How much can you receive?
The maximum a restaurant can apply for is $5 million.
Restaurant’s that have multiple locations can apply for a maximum of $10 million.
How will they calculate it?
The goal of this relief package is to determine how much was lost due to the shutdowns and people being encouraged to stay at home.
They will calculate how much you can receive by comparing the restaurants 2020 sales to the revenue in 2019. If you already received a PPP loan that will also affect how much you are eligible to receive. If your business was not open in 2019 you are still eligible to apply for this relief package.
How do I apply for relief?
The stimulus package was just signed into law on Thursday, March 11, 2021. More information will be coming out in the next days/weeks on how you can apply for this relief package. Be sure to check in with your accountant to stay up to date on how to apply.
Leave a comment