However, the Small Business Administration reported on May 18 that it had already received more than 303,000 applications representing over $69 billion, with nearly 38,000 applicants already approved for more than $6 billion. Sign up here. "We keep it going.". CBS News reporter covering economic policy. Get browser notifications for breaking news, live events, and exclusive reporting. At The Weisblatt Firm, our legal team supports all types of businesses, including hedge funds. There may be hope for those who missed a chance at funding. 3807, the Restaurant Revitalization Fund Replenishment Act, calling for an additional $60 billion to be added to the fund. Oops. Most young women are not. The SBA received requests for more than triple the allocated funds. Neighborhood improvement, fighting poverty among priorities for Detroit's $400M rescue fund, New Michigan law clears the way for higher-alcohol canned cocktails, become a digital subscriber to the Free Press, Your California Privacy Rights / Privacy Policy. The restaurant was named for Tom Pisha-Duffly's grandmother his oma who passed away from COVID-19 in the early days of the pandemic. They had applied for federal relief during the first 21 days of the Revitalization program, when priority was given to those groups because they were regarded as particularly in need of financial assistance. Wendy's wants to open more restaurants, just not in ghost kitchens. Greer prepared an application on behalf of his restaurant, is eligible for a grant from the RRF, but has not applied because he is barred from consideration altogether during the program's first twenty-one days from May 3 to May 24, 2021. 3.1.2023 5:35 PM, Joe Lancaster The lawsuit claims the agency discriminated against defendant Antonio Vitolo, who owns Jake's Bar and Grill in Harriman, Tennessee, because as a White man he was not eligible for priority treatment, even though his wife and co-owner is a Hispanic woman. This is not the first lawsuit filed against a federal program aimed at helping disadvantaged groups hurt by the pandemic. Representatives introduced legislation to replenish the Restaurant Revitalization Fund with a $60 billion second round of restaurant relief. Based on the number of applications from the priority groups, Greer feared that the fund would run out of money before the SBA could get around to considering his application. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. In at least one instance, the plaintiff was assisted in bringing the legal action by a conservative group that objected to the SBAs acknowledged bias. May 13, 2021 / 10:55 AM (Damian Dovarganes/AP). Get todays need-to-know restaurant industry intelligence. The SBA has not released any state-by-state statistics. The Restaurant Revitalization Fund was introduced as part of President Biden's American Rescue Plan, funneling billions directly to independent restaurants. Expertise: restaurant technology and operations. Since the fund closed on May 24, the SBAreceived more than 372,000 applications requesting$76 billion in funds far exceeding available funding. In a similar case, a federal district judge in Texas issued a preliminary ruling in May that the Restaurant Revitalization Fund discriminated against white restaurant operator, Philip Greer, owner of Greers Ranch Caf in Stephenville, Texas, alleging that the federal government violated the Constitutions Equal Protection Clause. Judge says Starbucks committed egregious and widespread labor violations Greta Thunberg removed from site of Norwegian wind farm protest, Zero-calorie sweetener popular in keto diets linked to strokes, heart attacks, China, Belarus call for cease-fire, negotiations in Ukraine, Fight in high school classroom leaves one dead, one injured, The shepherd boy, the wolf and the threat to Israeli democracy, Watch live: White House monkeypox response team holds briefing, Do Not Sell or Share My Personal Information. "All the lawsuits go away if the fund is refilled, because everyone receives their money.". However, the SBA has a mandate to prioritize applications from women, veterans and persons from socially and economically disadvantaged groups for the first 21 days of the program. Thursdays lawsuit from America First Legal (AFL) specifically takes issue with the Small Business Administrations (SBA) handling of the $28.6 billion in the Restaurant Revitalization Fund within President Bidens American Rescue Plan package passed by Congress. Smooth and cool., Do Not Sell/Share My Personal Information. The SBA, tasked with managing the relief funds, announced on May 10 that 16,000 businesses were approved for grants totaling $2 billion in just the first week. First published on May 13, 2021 / 10:55 AM. Given those developments, the SBA alerted 2,965 female and disadvantaged applicants via letter that they would not be getting their grants, even though theyd been informed earlier that theyd been approved and would soon be receiving the funds. Three restaurants involved in the high-profile suits had their applications processed and received grants totaling close to $933,000. A Sixth Circuit court panel ruled on May 28 that the Small Business Administrations prioritization of Restaurant Revitalization Fund grants on the basis of race and sex for the first 21 days of the program is unconstitutional. The Small Business Administration declined to comment on pending litigation. The Restaurant Revitalization Fund was practically destined to be oversubscribed. The owner of Bangkok 96 Street Food inside the Detroit Shipping Co.in Detroit applied for and received funds. Restaurant Revitalization Fund Replenishment Act Introduced : On June 8, 2021, a bipartisan group of Senators and U.S. A little over a week later, more restaurant owners received emails telling them that their previously approved grants would not be disbursed. Other restaurant owners report a similar experience: After days of calls, emails, and messages through the SBA portal and reassurance that the money was still coming, the grants were rescinded. Over the weekend, the SBA notified 2,965 previously approved priority Restaurant Revitalization Fund applicants in a form email that it will be unable to pay the promised grants due to the outcome of the lawsuits in Texas and Tennessee thatbarred the SBAfrom distributing grantson the basis of race and sex. THE HILL 1625 K STREET, NW SUITE 900 WASHINGTON DC 20006 | 202-628-8500 TEL | 202-628-8503 FAX. A lawsuiton behalf of the operator of the Lost Cajun restaurantin Texaswas filed by America First Legal, a legal group founded by Stephen Miller and Mark Meadows, former aides to President Donald Trump, according to Reuters. Greers lawsuit was backed by the America First Legal Foundation, whose president is former Trump Administration senior adviser Stephen Miller, architect of that administrations infamous Muslim travel ban. Or we could be skating through until next year," said Stephanie Watanabe, co-owner of Coast and Valley, a wine bar in Brooklyn. Restaurant Revitalization Fund Replenishment Act of 2021 On June 11, 2021, Congress introduced the Restaurant Revitalization Fund Replenishment Act of 2021 to replenish the fund with $60 billion. In our April interview, Administrator Guzman said she expected the money to run out and encouraged all eligible businesses in both the priority and non-priority groups to apply as soon as possible, in part to help demonstrate need. Sean Kennedy, executive vice president for public affairs at the National Restaurant Association, said that all priority group applicants who will not receive promised grant money have been notified. Eligibility was slated to open broadly afterward. Senate group wades into tough talks on Social Security. Uno to sell frozen pizza business to Great Kitchens Food Co. Red Robin's recovery gets off to a fast start. Thus, the Court concludes that the government has failed to prove that it likely has a compelling interest in "remedying the effects of past and present discrimination" in the restaurant industry during the COVID-19 pandemic. Experience: Kristen Hawley has nearly two decades of experience in the media industry. He and his partners learned in late June that the restaurant, which opened in 2020 during the pandemic, wouldn't receive the grant money it was promised. The temporary injunction issued by District Judge Reed OConnor allows the Small Business Administration to continue disbursing funds to non-priority applicants, according to Reuters, but its unclear when the more than 2,900 businesses whose applications were impacted by the injunction will be able to receive their funds. Lindsay Mescher, owner of Greenhouse Cafe in Lebanon, Ohio said she started to get nervous after eight or nine days passed with no bank deposit. The restaurants that sued the SBA for discrimination received almost $1 million in Restaurant Revitalization Fund grants The SBA previously dropped prioritization of Doing so will promote equal rights under the law for all American citizens and promote efforts to stop racial discrimination, the lawsuit adds, mirroring language included in AFLs, socially disadvantaged farmers and ranchers., Few industries have been harder hit by lockdowns and restrictions than the restaurant and bar industry., Lawmakers trounce Lobbyists in annual charity hockey game, These four House Republicans broke with the GOP to oppose inflation estimates bill, Biden mocks Rep. 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These business owners had their Restaurant Revitalization Fund grant applications approved as part of a program that prioritized traditionally underserved owners women, veterans, people of color, and other disadvantaged groups. U.S. District Judge Travis McDonough in Knoxville, Tennessee, issued the opinion denying a temporary restraining order last week in thelawsuitbrought by the Wisconsin Institute for Law & Liberty. The lawsuit said the limited funding put white male applicants at significant risk that, by the time their applications are processed, the money will be gone an argument that did not sway the judge. Nashville, Tennessee A federal judge has ruled against a conservative legal group that sought an immediate halt to the priority status for restaurants and bars owned by women and certain minorities in President Joe Bidens COVID-19 relief package. Heres What You Need to Know, Restaurant Group Joins Class-Action Suit Claiming Banks Mishandled PPP Applications, What the $900 Billion Stimulus Means for Restaurants: The Good, the Bad, and the Disappointing, With Restaurants in Crisis, the James Beard Foundation Has a New Mission, The American Restaurant Industry Is On Life Support, This Is the Only Way to Save the Restaurants You Love, Restaurant Relief Has Been Dropped from the Omnibus Spending Bill, As Coronavirus Shutters Restaurants Across the Country, a Swell of Support for Workers Rises Up, tool to quickly contact elected representatives. The flow ofSmall Business Administration funds has been halted forthousands of restaurantbusinesses owned by women, socially or economically disadvantaged individuals and veteransbecause of lawsuits filed by several white business owners. "If we are The SBA argued that the decision would be moot as most of the Restaurant Revitalization Funds have already been distributed and the decision would not retroactively re-collect them. "And these are men and women from all walks of life who share a passion for serving in the restaurant industry, and their applications are valid. Naturally, his posts here (like the opinions of the other bloggers) are his own, and not endorsed by any educational institution. However, in the split panel decision on May 28, the majority opinion overturned this opinion, stating that the SBAs prioritization of certain groups over others was racial gerrymandering and ordered the government to fund Vitolos grant application, if eligible. Accessibility | And its cuts must be informed by data that suggest intentional discrimination. A $28.6 billion federal restaurant aid fund has in its first week received more than 266,000 applications from struggling restaurants, many of which come from the The fund itself was based on the RESTAURANTS Act, a congressional proposal that sought $120 billion in direct aid to independent restaurants. The SBA previously dropped prioritization of women and minority-owned businesses and rescinded payments promised to almost 3,000 restaurants following these three lawsuits, 2023 Informa USA, Inc., All rights reserved, The Penn Hotel Sports and Raw Bar / Facebook, Denny's raises over $1.2 million to fight childhood hunger in 12th annual No Kid Hungry fundraiser, Bojangles names Tom Boland as new chief marketing officer, Baskin-Robbins rolls out chicken-and-waffle flavored ice cream, How Jersey Mike's is becoming 'America's sandwich shop', Nations Restaurant News launches new CREATE Roadshow event series, San Diegos Trust Restaurant Group drives retention, innovation with culture of yes, Tech Tracker: Restaurant QR codes are evolving and so should yours, Congress introduces a $60 billion replenishment of the Restaurant Revitalization Fund, SBA data confirms that the current Restaurant Revitalization Fund cant meet demand, Allowed HTML tags:

. The legal complaint argues that the fund requires the SBA to discriminate among restaurants according to the race and sex of the owner, by specifying that during the first 21 days of the program that officially began last week, the SBA administrator must prioritize awarding grants to businesses owned by women and racial minorities., These race and sex preferences are patently unconstitutional, and the Court should promptly enjoin their enforcement. The lawsuit opens the door for a class action suit, in which all restaurant owners and restaurants in the United States who are encountering or who will encounter race or sex discrimination from the Small Business Administration, could be potentially entitled to relief from the court. Some say they're considering collective legal action, others fear this roadblock could be the final nail in the coffin for their beleaguered businesses. Greer seeks monetary relief under the $28.6-billion Restaurant Revitalization Fund ("RRF") created by the American Rescue Plan Act of 2021 ("ARPA") and administered by the Small Business Administration ("SBA"). When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies. But in late May, a number of federal lawsuits backed by conservative groups including one led by former Trump advisor Stephen Miller, derailed the fund's disbursement. More:Neighborhood improvement, fighting poverty among priorities for Detroit's $400M rescue fund, More:New Michigan law clears the way for higher-alcohol canned cocktails, According to the lawsuit, Vitolo, a white male, claims that giving priority to certain groups "putswhite male applicants at significant risk that, by the time their applications areprocessed, the money will be gone. . The program aimed at helping restaurants hit hard by the pandemic has seen applications seeking twice as much aid as the program has funds for, signaling just how much strain COVID-19 has put on the industry. Doing so will promote equal rights under the law for all American citizens and promote efforts to stop racial discrimination, the lawsuit adds, mirroring language included in AFLs lawsuit filed late last month against the Department of Agricultures program to provide aid to socially disadvantaged farmers and ranchers., Ina statement announcing the new lawsuit Thursday, Miller said, Few industries have been harder hit by lockdowns and restrictions than the restaurant and bar industry.. newsletter, the Small Business Administration paused the disbursement of pandemic relief funds to thousands of minority-owned businesses, founded by Stephen Miller and Mark Meadows, both aides to former president Donald Trump, just requires that the Small Business Administration prioritize applications from women-owned, minority-owned, and veteran-owned businesses for the first 21 days that applications are open, also alleged that the program was discriminating against white people by prioritizing minority-owned businesses, appellate court later overturned McDonoughs decision, Biden administration has vowed that it will continue to fight the Texas judges injunction in court, U.S. SBA halts some grants under injunction in lawsuit filed by white restaurant owners, Everything Restaurants Need to Know About the Restaurant Revitalization Fund. These four House Republicans broke with the GOP to oppose inflation estimates McCarthy, GOP pump brakes on release of Jan. 6 footage to Tucker Carlson. A US federal judge issued a preliminary ruling Tuesday in favor of a white male restaurateur who claimed he had been discriminated against in connection to his We remain committed to doing everything we can to support disadvantaged businesses in getting the help they need to recover from this historic pandemic and restore livelihoods.". This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. The owner of a weddings and events business in New York City contacted couples to say she would soon be able to refund some of the money they put down as a deposit on their canceled 2020 weddings. On March 2, 1917, President Woodrow Wilson signed the Jones-Shafroth Act, granting Puerto Rico status a United State territory and granting all of its residents U.S. citizenship. 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