The restaurants that sued the SBA for discrimination received almost $1 million in Restaurant Revitalization Fund grants The SBA previously dropped prioritization of The decision comes after a federal judge in Texas issued an injunction on the release of the funds following a lawsuit from a Dallas-Fort Worth restaurant that alleges the programs plan to distribute funds to businesses owned by women, veterans, and racial minorities is unconstitutional. ): Plaintiff Philip Greer owns and operates Plaintiff Greer's Ranch Cafa restaurant which lost nearly $100,000 in gross revenue during the COVID-19 pandemic . Smooth and cool., Do Not Sell/Share My Personal Information. At issue in their latest suit is the $28.6 billion Restaurant Revitalization Fund created by the Biden administrations American Rescue Plan Act and launched earlier this month. 2023 www.freep.com. The question of the Constitutionality of race-based priorities and benefits was debated in a claim of racial discrimination against DoorDash, UberEats and Postmates that settled out of court in Arizona on June 2. He finished every time., Lifes a beach under the basket for Lemonts Miles Beachum. A legal group founded by ex-Trump aide Stephen Miller on Thursday filed another lawsuit accusing the Biden administration of racial discrimination in the distribution of COVID-19 relief funds, this time for money designated for restaurant owners. 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.. There may be hope for those who missed a chance at funding. The matter came to light days after a group of senators and congressmen from both parties had introduced a bipartisan proposal to re-up the RRF with $60 billion. The lawsuit targets the three-week period from May 3 until Monday during which the $28.6 billion Restaurant Revitalization Fund has only been processing and funding requests from businesses owned by women; veterans; or socially and economically disadvantaged individuals. Wendy's wants to open more restaurants, just not in ghost kitchens. The latest from Restaurant Business, sent straight to your inbox. Defendants argue the race-conscious rules serve a compelling interest and are narrowly tailored, satisfying strict scrutiny. "Under the guise of pandemic relief, the American Rescue Plan Act enables the federal government to engage in illegal and unconstitutional race and sex discrimination. Miller went on to say that the decision from the Biden Administration to determine eligibility and priority for restaurant relief funds based upon race is profoundly illegal and morally outrageous.. Most young women are not. 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. Affected business owners aren't sure what comes next. THE HILL 1625 K STREET, NW SUITE 900 WASHINGTON DC 20006 | 202-628-8500 TEL | 202-628-8503 FAX. 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 application for some of the nearly $29 billion in relief offered by the Biden administration. 3.1.2023 4:21 PM, Eric Boehm Arizona Attorney General Mark Brnovich said that even with the best of intentions altering the price of foods and services based on race is illegal. Federal judges in Texas and Tennessee agreed, and the SBA halted all payments to priority applicants. "We keep it going.". The owners of the Lost Cajun are white and claim that the decision does not provide them equal protection under the law, as required by the United States Constitution. CBS News reporter covering economic policy. The law However, this fund was quickly depleted, and many restaurants are still struggling to keep their doors open. Do not sell my personal infoPrivacy PolicyContact UsRSS, SBA stops Restaurant Revitalization Fund payments after courts rule they're discriminatory. . 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. The $28.6 billion Restaurant Revitalization Fund has only been processing and funding requests from businesses owned by women; veterans; or socially and economically disadvantaged individuals. But a new federal lawsuit filed Wednesday by a conservative law firm claims that's discrimination. | The SBA opened the fund to the priority groups for the first 21 days of the application window. As of June 30, the program had distributed all $28.6 billion to 105,000 restaurants, according to an email to business owners from the Small Business Administration (SBA). By May 15, the fund received 147,000 applications from the prioritized group requesting $29 billion in relief funds, according to the SBA. Support local journalism and become a digital subscriber to the Free Press. The Wisconsin Institute for Law and Liberty filed suit against Small Business Administration head Isabella Guzman, accusing the agency of race and gender discrimination in the administration of the Restaurant Revitalization Fund, the program passed as part of the American Rescue Plan to provide relief to hard-hit restaurants and bars. We will fight it wherever it shows up," said the institute's President and General Counsel Rick Esenberg in a statement. But they aren't the only restaurant owners waiting for much-needed government aid. The U.S. District Court for the Northern District of Texas on June 11 ordered a halt to payments from the Small Business Administrations Restaurant Revitalization Fund, which is part of President Joe Bidens $1.9 trillion economic stimulus plan passed by The decision overturned a Tennessee federal judge's original ruling that declined a temporary restraining request from Antonio Vitolo, the owner of Jake's Bar and Grill LLC in Harriman, Tenn. 3.1.2023 5:00 PM, Emma Camp 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. The application portal remained open through Monday because money set aside for establishments with 2019 annual revenue of not more than $50,000 was potentially still available. All rights reserved. The Wisconsin Institute for Law & Liberty, a conservative, nonprofit law firm, filed the lawsuit against SBAadministrator Isabella Casillas Guzman on behalf of Vitolo in May, stating that Vitolo failed to receive a Restaurant Revitalization Fund grant after applying on May 3 allegedly because he is a white man. The lawsuit was filed by a legal advocacy group called America First Legal, founded by Stephen Miller and Mark Meadows, both aides to former president Donald Trump, on behalf of a Keller restaurant called the Lost Cajun. In 2018, Michigan had 16,543 eating and drinking places, according to state data from the National Restaurant Association. Greer filed suit, claiming that the SBAs policy violates the Equal Protection Clause of the Constitution. 3.2.2023 12:01 AM, Jacob Sullum The Restaurant Revitalization Fund has been depleted. The fund itself was based on the RESTAURANTS Act, a congressional proposal that sought $120 billion in direct aid to independent restaurants. Licking your It's not known how many restaurants in Michigan applied for RRF funding. 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. Members help make our journalism possible. "The simplest solution to all of it, all of the problems with the lawsuits and everything else goes away if you refill the fund," Polmar said in an interview. The Restaurant Revitalization Fund was introduced as part of President Biden's American Rescue Plan, funneling billions directly to independent restaurants. As of May 12, the Small Business Administration said those businesses had already applied for $29 billion, more than the fund's total amount. Yet, as these restaurant owners, operators and workers try to pick up the pieces and rebuild their businesses, they are facing a new and insidious threat: racial discrimination from the government, he argued. 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. 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 Defendants propose as the government's compelling interest "remedying the effects of past and present discrimination" by "supporting small businesses owned by socially and economically disadvantaged small business owners who have borne an outsized burden of economic harms of [the] COVID-19 pandemic." From yesterday's decision by Judge Reed O'Connor in Greer's Ranch Cafe v. Guzman (N.D. 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. The priority policy was challenged with lawsuits alleging that the policy discriminated against white men. For the same reason, the Court finds that Defendants have failed to show an "important governmental objective" or "exceedingly persuasive justification" necessary to support a sex-based classification. Related: SBA data confirms that the current Restaurant Revitalization Fund cant meet demand. Experience: Kristen Hawley has nearly two decades of experience in the media industry. As courts debated the fund's fate, thousands of restaurants were left in limbo. The National Restaurant Association agreed that the ruling would not have much impact on the day-to-day ability of the SBA to administer the RRF but they do not know whether this ruling will impact government-issued grants or loans moving forward. Number 8860726. "This is critical in the first-come first-served program in order to ensure that those businesses are able to apply," she said. Lines and paragraphs break automatically. City of Richmond v. J.A. The Associated Press reported Wednesday that women, veterans and socially and economically disadvantaged business owners have already applied for $29 billion in aid, accounting for more than 147,000 applications. Under the Biden restaurant relief program, restaurants and bars can qualify for grants equal to their pandemic-related revenue losses, with a cap of $10 million per business and $5 million per location. Nearly 3,000 approved applicants, all women and people in groups deemed most in need, were told they wouldn't get their funds following legal challenges to the selection process. 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 Bill furthermore constructed a government and bill of rights for the island and allowed its residents to serve in the U.S. military.In 1952, the rights of Puerto Rico and its residents were further extended when the island promulgated its own constitution. | He described her as a scrappy small business owner herself. Lines and paragraphs break automatically. 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 2021 CBS Interactive Inc. All Rights Reserved. WebContact LPG. This is ugly, pernicious, and toxic. 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 women- and minority-owned businesses the fund is prioritizing. Thus, the lawsuit alleges, its possible that the entire $28.6 billion that Congress allocated to the Restaurant Revitalization Fund will be depleted before Nyman On Friday, June 11, the Small Business Administration paused the disbursement of pandemic relief funds to thousands of minority-owned businesses. . The pause in disbursement prevents more than 2,900 of those businesses from receiving COVID relief funds allocated in the Restaurant Revitalization Fund, according to Reuters. According to court records, the SBA paid $187,753 to the owners of the Lost Cajun in Keller, Texas; $640,425 to Penn Hotel Sports & Raw Bar in Hershey, Pa.; and $104,590 to Jakes Bar and Grill in Harriman, Tenn. on June 1, which satisfied the full claims of each applicant., Related: Congress introduces a $60 billion replenishment of the Restaurant Revitalization Fund. The RRFs funding ran out at the end of the 21-day period, or much faster than expected, prompting three applicants outside of the preference groups to file lawsuits. "We're in a food desert," she said. The law says a business is required to have 51% ownership by someone in one of the priority groups to qualify for the early priority for aid. The SBA received requests for more than triple the allocated funds. 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. 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