Why the Restaurant Revitalization Fund Will Work Better Than the PPP

The restaurant revitalization fund has the potential to drive recovery in the restaurant sector after a full year of severe dislocation—and it will likely provide better support than the PPP could. That’s because the fund comes with narrow guidelines about the restaurants that can access the money—focusing on small operations that have a clear path to recovery—and how they can use the money. Namely, advance rent and debt payments aren’t on the list.

“The fund is not intended to save anyone that is not going to make it,” Marbet Lewis, founding partner at Spiritus Law, tells GlobeSt.com. “The eligibility requirements prevent the business from being permanently closed. So, it is not intended to get anyone out of debt. It is really geared toward businesses that made it out of the pandemic and now need a little boost to help them get back to a position where they are starting to make a profit. This fund comes at a perfect time for this industry.”