Restaurant Revitalization Fund | Official website of the City of Tucson

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Restaurant revitalization fund

A few months after Lenny and Blanca Mark opened their new restaurant in the same spot that had been the popular Mexican restaurant Club 21 for seven decades, the husband and wife team felt they had a winner. In February 2020, her restaurant, El Chinito Gordo on North Oracle Road, earned $ 90,000.

A month later, their business fell through the ground. The coronavirus had arrived.

“Our incomes have fallen deeply,” said Lenny Mark. The business is losing hundreds of dollars every day, he said. In the first three months of serving Mexican food and attracting more customers, the deal seemed doomed as pandemic lockdown and public health concerns became priorities.

“It was crazy,” said Lenny. “It was a free fall.”

But through the 2020 pandemic year, Lenny and Blanca continued to fight. The couple downsized, and with the remaining staff on the payroll, they kept the doors open and prepared take-away meals. The income from the family’s other business, a Chinese restaurant on the south side, helped maintain El Chinito Gordo.

Lenny said, “We fought and did everything we could.”

Still, the business could use some help. The clientele and income are nowhere near as high as they were in early 2020.

However, a new federal program could be key to ensuring Lenny and Blanca keep El Chinito Gordo, as well as other restaurants and eateries of all kinds in Ward 3 and across town, up and running.

On Monday, the state Small Business Administration provided more than $ 28 billion in financial aid through the Restaurant Revitalization Fund. This fund is part of the historic American rescue plan that was passed by Congress and put into effect by President Biden in March.

This aid program will fund restaurants with up to $ 10 million per company, to match losses during the pandemic. It’s not a loan. It’s a grant, but the money must be used for eligible expenses by March 11, 2023.

But there’s a catch: entrepreneurs have to file an application, which can be daunting. However, there is guidance on how to submit the required papers and navigate the process.

The bottom line, regardless of the process, is “if you’ve had gross losses, apply,” said Francisca Villegas-Braker, director of the Women’s Business Center at Southern Arizona YWCA. “If you started a business during the pandemic, apply. If you have a point of sale but think you don’t have all the information, apply, ”she urged.

It is important to apply now. For the first 21 days, beginning May 3, the SBA will prioritize grant applications from companies owned and controlled by women, veterans, and socially and economically disadvantaged individuals. After the three weeks, all eligible applications will be funded on the first-come-first-served principle until the funding is exhausted.

There are several ways to help you, the business owner, apply for funds successfully. While the SBA is administering the program, it is unable to offer close personal advice. But the SBA’s website is certainly a good place to start. The website offers several links with detailed information, including a telephone number: 844-279-8898. You can also watch a video presentation which you can watch here and which explains the application process.

It is likely that few eligible Ward 3 companies are aware of the bailout program.

At Smokey Mo on North First Avenue, Brandon Johnson, one of the owners of the grill restaurant, didn’t know about it.

“We could definitely use the help,” he said on Thursday afternoon. He estimated that business had slumped by about 20 percent in the past year, forcing the establishment to let go of “a few good employees.”

With government aid, Smokey Mo could reinvest the employees and reinvest rescue funds in the building and its outdoor terrace.

At Mario’s Pizza, on North First Avenue south of Ft. Lowell Road, owner of Chhib Svay, also did not know the funds were available. He also had no government aid during the pandemic. He did not apply for financial aid through the Payroll Protection Program, one of the federal government’s first pandemic relief programs last year. And he could have used these funds to keep the workers he laid off or to increase the working hours of his part-time workers. He’s the only full-time employee, and Chhib estimates his business has slumped 30 percent.

For the most part, he did not apply because the application process was cumbersome for him, a small business owner. “I don’t know how to do that,” he said.

There are options for business owners like Chhib who find the application process cumbersome and confusing.

At Chicanos Por La Causa, the small business division of Prestamos has staff guiding restaurant and taco truck owners through the steps.

“We ask people to go to our website and they will be directed to a specialist,” said Alex Magallanes of Prestamos Southern Arizona. He said his office received a good number of calls inquiring about the program, but he admits the application process can be slow. “It can be difficult for the mom and pop shops,” he said.

Another organization that can help with applying for restaurant revitalization funding is the Portable Hands-on Educational Prep, commonly known as PPEP. “We would go with you,” said Pattie Mendoza.

For Prestamos of Southern Arizona go to https://www.prestamosloans.org/ or contact Alex Magallanes at alex.magallanes@cplc.org and his direct phone number is 480-750-1898.

For PPEP go to http://www.pmhdc.net/ or call Pattie Mendoza at 520-622-3553.

And to contact the YWCA Women’s Business Center, go to ywcatucson.org/program/wbc/womens-business-center-wbc/ or contact Francisca at 520-447-8911 or Fvillegas@ywcatucson.org

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