Welcome to this week’s installment on raising capital for your small business! Head over to our Youtube channel and take a look at these pages on SBA.gov, Inc. Magazine, and The Business Journals for a deeper dive.
The SBA has a new program that’s targeted at helping restaurants. People have asked us, “Why do you talk about these debt programs in your raising capital segment?” Because there’s more than just equity capital involved in any organization’s capital stack. Most companies have three times more debt than they do equity, at the least, and so debt is the largest form of capital that businesses can pursue, so it’s applicable to talk about that right now.
But right now we’re talking about restaurants. The SBA is rolling out a new program called the Restaurant Revitalization Fund, and it is about 30 billion dollars that’s targeted at assisting restaurants that have been impacted by the COVID-19 pandemic and being forced to shut down. You are not excluded from it if you’ve already taken advantage of PPP loans, and there’s supposed to be another fund later (but it’s been pulled back) that will be targeting entertainment venues… but that is not part of this fund. That’ll be a separate fund that will come down later.
So how’re you gonna apply? Who this applies to right now? Restaurants, food stands, food trucks, food carts, caterers, bars, saloons, lounges and taverns, snack and non-alcoholic beverage bars, bakeries, brew pubs, wineries, inns that sell on site food, and licensed facilities with beverage and alcohol producer permits. Basically, if you’re serving food, you can apply for this by going directly to the SBA site. They are opening a portal in the next few days where you will complete SBA form 3172, so you will apply for this fund directly with the SBA. You will not go to your bank like you did for a PPP loan. This is more like the EIDL loans that you may have also applied for that you do that through the SBA. The documentation you’re going to need is all the usual suspects: business tax returns, personal tax returns, bank statements, and the like. Nothing surprising on that list. You can start applying SOON, and it will be a first come first serve basis. As soon as the 30 billion dollars is gone, it will be over, though they could always extend it like they did PPP last year.
If this impacts you or somebody you know, share this video with them and share these links with them, so that they can take advantage of that and get back on their feet. If there’s any way we can help you with this, don’t hesitate to reach out!