Congress Passes American Rescue Plan with Restaurant Relief

3 Min Read By Pooja S. Nair

The American Rescue Plan Act (“the Act”) was passed by the Senate on March 6, 2021 by a 50-49 vote.  It was ratified by the House of Representatives by a 220-211 vote on March 10, 2021. It is now headed to President Biden’s desk for signature, which is expected by this Friday, March 12, 2021. 

The $1.9 trillion stimulus includes over $25 billion earmarked as direct aid to restaurants.  This relief is modeled after the RESTAURANTS Act, which was first proposed by restaurant industry groups in April 2020.  The $28.5 billion in aid is the first federal grant program specifically targeted to the industry since the pandemic began.

Restaurant Revitalization FundSection 5003 of the Act establishes a Restaurant Revitalization Fund, to be administered by the Administrator of the Small Business Administration (“SBA”).  The Restaurant Revitalization Fund consists of $25 billion earmarked for Restaurant Revitalization Grants. 

The Act earmarks $5 billion of this total fund amount…