Are There Grants for Restaurants in 2026?

There's no open federal grant program for restaurants in 2026. The SBA says it doesn't provide grants for starting or expanding a business, and its pandemic-era Restaurant Revitalization Fund closed in 2021 and isn't taking applications. What restaurants can actually use is mostly SBA-backed loans, federal tax provisions like the FICA tip credit and Section 179, and whatever grants your city or state happens to be running.

Last checked: October 24, 2026. This page is general information, not tax, legal, or financial advice.

Does the federal government give grants to restaurants?

Not as a standing program. The SBA's grants page says plainly that "SBA does not provide grants for starting and expanding a business." The SBA's grants go mainly to research and development (SBIR and STTR), to state export programs, and to nonprofits and resource partners that train and counsel business owners.

If someone contacts you offering a "federal restaurant grant" for a fee, be careful. The SBA says it only communicates from email addresses ending in @sba.gov and asks people to report suspected fraud.

Is the Restaurant Revitalization Fund coming back?

The Restaurant Revitalization Fund (RRF) was created by the American Rescue Plan Act to help restaurants, bars and similar businesses with pandemic revenue losses. The SBA announced its closure on July 2, 2021, after demand far exceeded the money available. The SBA's RRF documents say the program "is no longer accepting new applications," and its RRF help center says no further payments will be sent without Congress providing new funding. As of the date above, there's no open RRF application.

SBA 7(a) loans

The 7(a) program is the SBA's main business loan program. The maximum loan is $5 million, and proceeds can go to working capital, equipment, furniture and fixtures, real estate, refinancing business debt, or buying a business. You apply through an SBA-approved lender, not the SBA. The business must be for-profit, located in the U.S., small under SBA size standards, creditworthy, and unable to get the credit on reasonable terms elsewhere. SBA's Lender Match tool connects you with participating lenders.

SBA microloans

For smaller needs, SBA microloans go up to $50,000 through nonprofit intermediary lenders. The SBA says the average microloan is about $13,000, the maximum term is seven years, and rates generally run 8% to 13%. Microloans can cover working capital, inventory, supplies, furniture, fixtures, machinery and equipment, but not existing debt or real estate.

SBA 504 loans

If you're buying or building a restaurant property or long-life equipment, a 504 loan through a Certified Development Company offers long-term fixed-rate financing. SBA lists a $5.5 million maximum. 504 loans can't be used for working capital or inventory.

The FICA tip credit (Form 8846)

This is the one federal tax credit written with restaurants in mind. Food and beverage employers where tipping is customary can claim a credit for the employer share of Social Security and Medicare taxes they pay on employees' tips. Per the IRS:

• It applies to tips received for providing, delivering or serving food or beverages where tipping is customary.
• Tips used to bring an employee up to $5.15 an hour (the federal minimum wage in effect on January 1, 2007) don't count toward the credit.
• It's part of the general business credit, and you can claim or elect not to claim it within three years of your return's due date.
• Partnerships and S corporations must file Form 8846.

For tax years beginning after 2024, the credit was also extended to certain beauty service businesses. That change doesn't alter the rules for restaurants.

Section 179 for kitchen equipment

Restaurant equipment is often tangible personal property that can qualify for Section 179. The IRS even lists refrigerators as an example. For tax years beginning in 2026, the limit is $2,560,000, reduced once purchases exceed $4,090,000, and the deduction can't exceed your business income. Certain interior improvements to a nonresidential building, plus roofs, HVAC, fire protection and alarm systems, and security systems, can also qualify if you elect to include them. See our guide to the Section 179 deduction limit for 2026.

Where do restaurant grants actually come from?

Grants that a restaurant can apply for are usually run locally, by a city, county or state economic development agency, and are typically tied to a specific place or purpose. They open and close on their own schedules, so check:

• Your city or county economic development office.
• Your state's commerce or economic development department.
• Your local Small Business Development Center (SBDC). SBDCs provide counseling and help businesses access capital.
• SCORE, whose volunteer mentors give advice on financing and business planning at no cost.