Hard-Hit Restaurant Sector to Receive $28.6B in Grants

Part of the $1.9 trillion American Rescue Plan recently signed into law by President Biden will provide $28.6 billion in grants to the hard-hit restaurant sector. San Jose city officials will be working with the regional office of the Small Business Administration to help San Jose food and beverage businesses apply for the grants as the application process opens up.

Businesses that have applied for and received PPP loans will also be eligible to apply for the new grant. There will be a special early-application advantage provided for independent hospitality businesses owned by people who are women, veterans, Black, indigenous or of color. Some of the businesses that may be eligible to apply for the grants include restaurants, bars, taprooms, caterers, brewpubs and tasting rooms.

The grant is intended to be used for payroll and benefits, mortgage payments, rent, utilities, maintenance, supplies, food, operational expenses, and any other expenses deemed essential by the SBA. Restaurants will be 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.