Menu
Tax Notes logo

Rhode Island Issues Reminder About COVID-19 Relief Grants for Restaurants

Dated Nov. 25, 2020

Citations: ADV 2020-49

SUMMARY BY TAX ANALYSTS

The Rhode Island Division of Taxation has issued a reminder about the relief program developed by Gov. Gina Raimondo (D) for eligible restaurants, bars, and other similar businesses required by her November 5 executive order — issued in response to COVID-19 — to close early each day beginning November 8; the division is already accepting applications and issuing checks for the program, which provides grants of $2,000-$10,000 to affected businesses using federal Coronavirus Aid, Relief, and Economic Security Act funds.

Reminder about grants for restaurants and bars amid pandemic

Division has already begun accepting applications — and issuing checks

NOVEMBER 24, 2020

PROVIDENCE — The Rhode Island Division of Taxation today issued a reminder about the grant program announced by Governor Gina M. Raimondo for restaurants and bars that have been ordered to close earlier than usual because of the coronavirus (COVID-19) pandemic.

Governor Raimondo developed the grant program to coincide with her Executive Order that mandates early shutdown for bars and restaurants — part of a range of measures aimed at limiting the spread of the coronavirus and reducing the rising number of coronavirus cases.

Using federal Coronavirus Relief Funds, the Governor authorized the payment of grants to the impacted businesses.

“We have already begun taking applications and issuing checks,” said Rhode Island Tax Administrator Neena Savage. The Division recently began mailing the first batch of 350 checks under the program — to those restaurants and bars that have filed applications and have met the program's criteria, she said.

In addition, the Division has begun mailing letters to approximately 1,700 restaurants and bars as a reminder that the grant program is available and that they may be eligible. “We want to get the word out that this program is up and running,” she said.

“Remember: These are grants, not loans, and they can offer needed relief to restaurants and bars that have incurred losses as a result of the pandemic,” she said.

In general, the grants are available to restaurants and bars that are active taxpayers that remit Rhode Island sales tax and meals and beverage tax and that hold liquor licenses that allow for liquor consumption on premise.

Under the program, the Division of Taxation will issue grants to each such licensee who remitted sales tax and meals and beverage tax to the Division for the months of July, August, and September 2020, and whose business is adversely affected by the early closing hours which began on Sunday, November 8, 2020.

Each such grant ranges from a minimum of $2,000 to a maximum of $10,000.

  • Details of the new program — including an online application form, answers to frequently asked questions, and contact information — are available on a webpage that the Division has created especially for this program: http://www.tax.ri.gov/RICares/.

Copy RID