Restaurant relief programs have been crucial in helping restaurants survive after the pandemic.
However, many business owners are still unaware of additional funding options available to them.
This article explores various funding opportunities, including overlooked grants from government and private sources.
Understanding How Restaurant Relief Programs Work
Restaurant relief programs provide critical financial support to help food service businesses recover from economic hardship.
According to the SBA, more than 278,000 restaurants applied for over $72 billion in federal relief through the Restaurant Revitalization Fund alone.
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Common Restaurant Relief Programs You Already Know
The federal government created two major relief programs that became a lifeline for restaurant owners during the pandemic.
1. PPP loan basics
First-time borrowers could receive forgivable loans up to $10 million through the Paycheck Protection Program.
Restaurant owners just needed to spend at least 60% of funds on payroll costs to qualify for complete forgiveness.
They also had to keep at least 75% of previous wages for employees who earned under $100,000 annually.
Restaurant Revitalization Fund overview
The Restaurant Revitalization Fund gave grants up to $5 million per location with a maximum of $10 million per business.
These grants didn’t require repayment as long as businesses used them for eligible expenses before the specified deadline.
Lesser-Known SBA Restaurant Relief Fund Programs
Restaurant owners can find many funding sources beyond popular federal assistance programs at state and local levels.
State-specific restaurant grants
The Restaurants Care Resilience Fund in California guides restaurant support by offering $5,000 grants to independent restaurants.
This program has helped over 2,300 workers and 1,600 independent restaurants since 2017.
The program's success with diversity stands out - 66% of recipients are women-owned businesses and 77% belong to people of color.
Local economic development funds
Restaurant owners can get local financing opportunities and workspace solutions through the Economic Development Administration (EDA).
Your local Small Business Development Center (SBDC) is a vital resource that provides business mentoring and networking connections.
Rural areas with populations under 20,000 can benefit from the Community Facilities Direct Loan & Grant Program.
Small business innovation grants
Restaurants learning about technological advancements can find great opportunities through the Small Business Innovation Research (SBIR) program.
The Small Business Technology Transfer (STTR) program supports research partnerships between restaurants and non-profit research institutions.
Restaurants competing with out-of-state locations can look into the Texas Enterprise Fund's performance-based grants.
Private Restaurant Relief Programs Sources Most Owners Miss
Private organizations provide substantial funding opportunities that most restaurant owners might miss.
These programs work alongside government assistance and come with flexible terms and specialized support.
Restaurant industry association grants
The National Restaurant Association Educational Foundation helps Chefs, Line Cooks and other restaurant workers through targeted programs.
The foundation runs several initiatives that include job training, culinary arts education and apprenticeships for military service members who want to start restaurant careers.
The Restaurant Employee Relief Fund has given out more than $21.5 million in one-time grants and helped over 43,000 eligible restaurant workers.
Corporate-sponsored relief programs
DoorDash's Restaurant Disaster Relief Fund gives $10,000 grants to restaurants hit by natural disasters.
Your establishment needs to meet these requirements to qualify:
- No more than three locations
- Less than $3 million in revenue per location
- Fewer than 50 employees per location
- Open for at least six months
- The American Express Backing Small Businesses program gave $10,000 grants to 500 small businesses
- Comcast Rise launched their small business grant program right after, offering $5,000 grants plus business consultation
- The Venmo Small Business Grant program helps smaller establishments by giving 20 entrepreneurs $10,000 grants.
These corporate programs usually have shorter application windows and make funding decisions faster than government programs.
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How To Stack Multiple Restaurant Relief Programs
You need careful planning to maximize financial support by combining multiple relief programs.
A good understanding of how funding sources work together can substantially increase your total aid package.
Understanding program compatibility
The Restaurant Revitalization Fund cannot be combined with Shuttered Venue Operator Grants.
You must choose between these two programs based on your business model.
PPP loans and RRF grants can work together, but the PPP amount will be deducted from your RRF calculation.
Maximum benefit strategies
A detailed budget should match each funding source with specific eligible expenses.
Using grant money for unauthorized purposes could trigger repayment requirements or federal investigations.
Programs like RRF require you to track every dollar spent through their application portal.
Final Steps: Maximizing Restaurant Relief Fund Applications
Many restaurant owners focus on major federal programs, but numerous state, local, and private funding options exist.
With smart planning, you can combine multiple relief programs for greater impact.
Explore grants from state agencies, industry groups, and corporate sponsors, and consult a financial advisor to stay compliant.
Written by Lidija Misic
Lidija holds a BA in English Language and has lived in five different countries, where she has worked in various roles, including as a flight attendant, teacher, writer and recruiter. Her biggest passion is crafting great content and reading. She is particularly passionate about creating punchy copy that inspires people to make positive changes in their lives.
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