ACCESS Newswire
21 Nov 2021, 08:35 GMT+10
SAN FRANCISCO, CA / ACCESSWIRE / November 20, 2021 / The Small Business Administration (SBA) closed the Restaurant Revitalization Fund (RRF) program almost as fast as they opened it. Due to high demand, restaurant locations submitted 278,304 RRF applications totaling $72,233,280,031. Only a small percentage of those restaurant applicants were awarded funds. In all, 101,004 restaurants received a combined $28,574,979,472 in EIDL funds. This left many other restaurant owners, restaurateurs, and principals scrambling for what to do next, especially restaurant groups and chains with multiple locations under ownership.
Restaurant Group ownership approved for an SBA EIDL Disaster Loan after missing out on the RRF program. Image Credit: 123rf / Wavebreak Media Micro.
'Restaurants are one of the hardest hit industries throughout the pandemic. Restaurant Groups that have many locations, face multiple times the stress and headaches with each location. Even those locations fortunate enough to be growing revenue during COVID, are still facing labor issues and supply chain issues. More revenue is coming at a higher cost of doing business,' said Marty Stewart, Chief Strategy Officer for Disaster Loan Advisors (DLA).
DLA is a strategic advisory SBA loan consultancy firm that specializes in assisting restaurant groups and ownership with multiple location entities, to help navigate each restaurant / retail location for maximum EIDL qualification. Locations that received prior SBA EIDL loans that need an increase or modification (up to $2M maximum), as well as EIDL loan reconsideration requests for those locations that have been denied.
'In some cases, we have CEOs, CFOs, or COOs of restaurant groups or nationwide chains that come to us with many locations in need of assistance. Some need increases, some need reconsiderations. For example, some locations have already received RRF funds and EIDL loans, but then got denied for an EIDL increase,' continued Stewart.
Restaurant Groups, Nationwide Chains, and Franchise Locations Next Strategic Move
With the closure of the RRF on July 2, 20201, originally signed into law by President Joe Biden as part of the American Rescue Plan, the program provided much needed economic aid to restaurants and other establishments struggling to make ends meet as a result of the pandemic.
Sadly, with only 37% of the restaurant applicants receiving RFF funds, many other restaurant owners, restaurant groups, executives, and principals that have multiple locations, were left scrambling what to do next to make up for industry-wide losses per location.
The SBA will continue to deliver economic aid to help restaurants recover with critical relief through programs such as the Economic Injury Disaster Loans [EIDL].
'The most strategic move that can be made to have a shot at getting more EIDL funds for each restaurant location, is filing extensive reconsideration requests and / or increase requests, depending on each restaurant location situation. And by extensive, I mean lengthy enough letters that are telling the full story for each location, and supporting that with facts and documentation. The goal is to get a yes,' said Stewart.
Past Restaurant Revitalization Fund (RRF) Program Details
The average size RRF grant award to restaurant applicants was $283,000:
As outlined by Congress, restaurants and bars were eligible for economic aid equal to their pandemic-related revenue loss, with a cap of $10 million per business and $5 million per location.
Restaurant Groups with Multiple Locations and Other Food and Beverage Restaurant-Style Related Entities
Per SBA guidelines, eligible business entities who have experienced pandemic-related revenue loss include:
How Restaurant Groups Can Use Economic Injury Disaster Loan (EIDL) Funds for Their Restaurant Locations
With recent changes to the EIDL program, SBA has relaxed guidelines on how restaurants and other related businesses can use loan funds. New expanded guidelines for specific expenses include:
Restaurant Groups and Restaurant Owners SBA Cross-Program Eligibility on COVID-19 EIDL Relief Options
According to the SBA, cross-program eligibility is as follows:
COVID-19 EIDL Applicant
COVID-19 EIDL Recipient
Restaurant Revitalization Fund (RFF) Applicant
Restaurant Revitalization Fund (RFF) Recipient
National Restaurant Association's Restaurant Industry Facts at a Glance
The National Restaurant Association (Restaurants.org) published recent industry statistics and national statistics on how the pandemic has impacted the size and scope of the U.S. restaurant industry as a whole.
Restaurant Industry Facts at a Glance:
The National Restaurant Association is the largest foodservice trade association in the world. The organization represents and advocates on behalf of more than 500,000 restaurant businesses.
'With over 110,000+ restaurant locations no longer in operation due to COVID, we want to work with restaurant groups that have multiple locations to help them get the much needed additional financial relief from the EIDL loan program to help save each one of their locations from becoming a statistic,' said Stewart.
About Disaster Loan Advisors™
Disaster Loan Advisors™ is a trusted team of professionals dedicated to saving small businesses and companies from lost sales, lost customers, lost revenue and rescuing your business from potential financial ruin from this COVID-19 / Coronavirus disaster, and the recent Hurricane Ida 2021 declared disaster.
DLA specializes in assisting ownership groups with multiple business entities, multiple location restaurants and retail groups, and other complex situations that require an expert to be brought in to assess the situation and create the most strategic path forward.
Has Your Small Business or Company Suffered Financial Loss due to COVID, Hurricane Ida, or Other Natural Disaster? Was Your SBA Loan Application Denied for an EIDL Loan? Are You Looking for an Increase to Your Existing SBA EIDL Loan (up to $2 Million) Need Strategic Guidance Before You Make Your Next Move?
CONTACT:
Disaster Loan Advisors
Elena Goldstein
Director of Media Relations
877-463-9777 ext. 3
[email protected]
Connect with Disaster Loan Advisors via social media:
Linkedin, Facebook, Instagram, Twitter, and CrunchBase.
For a strategic exploratory conversation, schedule a free consultation call by visiting:
https://www.disasterloanadvisors.com/contact
SOURCE: Disaster Loan Advisors
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