By Debbie Hall
Lead photo by K8
The American Rescue Plan Act, signed by President Biden in 2021, has established the Restaurant Revitalization Fund (RRF), a $28.6 billion grant program administered by the Small Business Administration (SBA) “to aid restaurants struggling with the 2020 COVID-19 pandemic mandated shutdowns and reduced capacity restrictions.” AG FinTax is opening up its services to small business restaurants and food and beverage service business owners who need help when applying for the Restaurant Revitalization Fund. This financial services company is fully prepared to remotely and securely work with small businesses on this complicated and lengthy application process.
The funds are being delivered on a first-come, first-serve basis, which makes the urgency of the application filing a priority for restauranteurs and other business owners in the hospitality industry. While no deadline has been set for the RRF, it is important to file as soon as possible. The funding for restaurants and other businesses in the food and beverage industry is not a loan but a tax-free grant. However, it is not available to restaurants and other food and beverage industries that went out of business and not operational.
According to founder and CEO Anil Grandhi, the time frame is up to 21 days, but this is after the application is filed and approved by the SBA.
“The recipient does not need to pay back this money as long as it is used to keep the business open and operational, including payroll, inventory, and other expenses,” explains Grandhi. “The funding can also be used for expansion such as outdoor dining areas. This is one of the best grants being offered by the government.”
According to RRF and SBA, the program will provide restaurants with funding equal to their pandemic-related revenue loss of up to $10 million per business and no more than $5 million per physical location. The businesses must still be operational.
Eligible business as listed in the SBA includes:
- 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.
Grandhi created AG FinTax in 2019 as a tax planning and accounting firm that brings tax reduction strategies to small businesses and entrepreneurs. AG FinTax offers advisory services with a professional team of CPAs, chartered accountants, and CMAs. In the two years, the business has been open; AG FinTax has helped over 200 business owners to receive $115 million in funding due to COVID-19.
Born and raised in Rajam, in the state of Andhra Pradesh, Grandhi learned at a young age about running a business, managing finances, and preparing a business for growth. After graduating college, Grandhi started working in finance at PricewaterhouseCoopers (PwC) in India. Later, he emigrated to the U.S. to take a position with SunEdison, a major renewable energy company and held roles in the financial departments at Amazon and Starbucks. Grandhi offers 15 years of experience and expertise as a Chief Financial Officer and controller.
For more information about the Restaurant Revitalization Fund and other services, visit AG FinTax at agfintax.com.