. 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. 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. Please enter valid email address to continue. 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. WebNew Leaf Initiative Inc (EIN# 883342112) is an tax exempt organization filed with Internal Revenue Service (IRS). Winsight is a leading B2B information services company focused on the food and beverage industry, providing insight and market intelligence to business leaders in every channel consumers buy food and beverage convenience stores, grocery retailing, restaurants and noncommercial foodservice through media, events, data products, advisory services, and trade shows. 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. It's not known how many restaurants in Michigan applied for RRF funding. In an April interview with Food & Wine, SBA Administrator Isabella Casillas Guzman explained the importance of that structure. ): 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 . Registered in England and Wales. The priority policy was challenged with lawsuits alleging that the policy discriminated against white men. Individuals who are members of the following groups are presumed to be socially disadvantaged: Black Americans; Hispanic Americans; Native Americans (including Alaska Natives and Native Hawaiians); Asian Pacific Americans; or Subcontinent Asian Americans.")} A court initially rejected the argument, but the decision was reversed upon appeal, and the plaintiffs prevailed in the other two actions. 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. She's worried for the future of her restaurant, one of the only places in her area that serves locally sourced food at accessible prices. After filing his request for funding, Vitolo was told women and minority restaurant owners would be prioritized during the first 21 days of fund disbursement, which began on May 3. Do not sell my personal infoPrivacy PolicyContact UsRSS, SBA stops Restaurant Revitalization Fund payments after courts rule they're discriminatory. By submitting your email, you agree to our, The freshest news from the local food world, Two Trump Cronies and a DFW Restaurant Are Behind the Lawsuit Preventing Minority-Owned Businesses From Receiving Restaurant Revitalization Fund Relief, Sign up for the The group is appealing the decision. Accessibility | One was an air ball., Go big or go home. Vang says the funds helped her to strategize. 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.". 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 program relies on a definition of socially disadvantaged that is limited to people subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities. Groups presumed to be socially disadvantaged include: Black Americans, Hispanic Americans, Native Americans, including Alaska Natives and Native Hawaiians; Asian Pacific Americans; and Subcontinent Asian Americans. The lawsuit filed in the Eastern District of Tennessee is seeking a temporary restraining order and injunction to halt the administration from paying out any grants, unless it starts processing and paying out money in the order applications were received regardless of an applicant's gender or race. A group of farmers sued the federal government charging the administration's efforts to help minority farmers through a COVID-related loan forgiveness program was discriminatory. This is ugly, pernicious, and toxic. Weeks later, approvals in-hand, they learned that the relief funds they were promised weren't coming. Most young men are single. People drink outdoors March 31, 2021, on the patio of Big Dean's Ocean Front Cafe in Santa Monica, California. "If we are The suit alleges that the Smiths are being subjected to unconstitutional race and sex discrimination by the priorities that the statute commands for minority- and women-owned businesses, and that because more than half of the requests for Restaurant Revitalization Fund monies were made by business owners under those categories, its possible that the entire $28.6 billion that Congress allocated to the Restaurant Revitalization Fund will be depleted before the plaintiffs can even be considered for relief under the program.. Its estimated that 1 in 6 restaurants across the country permanently closed due to the pandemic. {"Economically disadvantaged individuals are those socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area who are not socially disadvantaged. 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 Sixth Circuit court panel has ruled the prioritization of Restaurant Revitalization Fund loans on the basis of sex and race unconstitutional, 2023 Informa USA, Inc., All rights reserved, 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, SBA data confirms that the current Restaurant Revitalization Fund cant meet demand, The Restaurant Revitalization Fund application portal is closing on May 24, Allowed HTML tags:
. Support local journalism and become a digital subscriber to the Free Press. The fund itself was based on the RESTAURANTS Act, a congressional proposal that sought $120 billion in direct aid to independent restaurants. Burlington Centrals Nicholas Gouriotis figures out the difference. 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. 3.1.2023 4:21 PM, Eric Boehm newsletter, Sign up for the 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 Lines and paragraphs break automatically. "All the lawsuits go away if the fund is refilled, because everyone receives their money.". 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. Instead, the next day, she received an email stating that her grant was canceled. There may be hope for those who missed a chance at funding. Related: SBA data confirms that the current Restaurant Revitalization Fund cant meet demand. Federal judges in Texas and Tennessee agreed, and the SBA halted all payments to priority applicants. 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 Jakes Bar and Grill owner Antonio Vitolo won the appeal of his lawsuit against the SBA on May 28 after a Sixth Circuit court panel ruled that the 21-day prioritization program is unconstitutional. In the suit, the Lost Cajun owners Janice Smith and Jason Smith, along with Pennsylvania restaurant owner Eric Nyman, allege that the Small Business Administrations plan to distribute pandemic relief funds to small businesses is unconstitutional. In a similar lawsuit filed by Eric Nyman, owner of the Penn Hotel Sports & Raw Bar and Janice and Jason Smith, owners of the Lost Cajun in Keller, Texas, Judge Reed OConnor ruled on May 28 that the SBA must dole out grants in accordance with a race-neutral, sex-neutral first come, first served policy. The Lost Cajun was approved for an award on May 29, and though the Penn Hotel Sports & Raw Bars case was under review for slightly longer (since the restaurant sought more than $300,000), both restaurants received grants on June 1. Staggering snowfall in California mountains leaves residents trapped for days, SpaceX launches new crew on flight to space station, Prosecution wraps case at Alex Murdaugh murder trial, Explosive found in checked luggage at Pennsylvania airport, feds say, FDA authorizes first at-home test for both COVID and flu, Couple accuses fertility clinic of implanting embryo with cancer genes, Several hospitalized after Lufthansa flight diverted to Dulles due to turbulence, Colon cancer rates rising in younger age group, study finds, Firefighter dies battling blaze in downtown Buffalo, mayor says, Biden talks stimulus funds for restaurants, Biden talks federal stimulus funding for restaurants, Top McCarthy aide, House Oversight chair each met with Ashli Babbitt's mother, Pence won't commit to supporting Trump if he's the nominee, Garland testifies before Senate panel amid ongoing special counsel probes, Report finds FBI, Capitol Police didn't share "credible threats" before Jan. 6, Biden tells Democrats to talk about their accomplishments, to provide relief to hard-hit restaurants and bars, group of farmers sued the federal government. People drink outdoors March 31, 2021, on the patio of Big Dean's Ocean Front Cafe in Santa Monica, California. The New York event company owner, who asked to not be named, has had to move out of her apartment because she couldn't pay rent. She called the SBA's hotline and was told the money was on its way. First published on May 13, 2021 / 10:55 AM. Please enter a valid email and try again. / CBS News. In 2018, Michigan had 16,543 eating and drinking places, according to state data from the National Restaurant Association. [The defendants' evidence] lacks the industry-specific inquiry needed to support a compelling interest for a government-imposed racial classification. 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"). They're legitimate and they deserve to be funded.". By May 15, the fund received 147,000 applications from the prioritized group requesting $29 billion in relief funds, according to the SBA. We're going to be recipients of this government funding? The SBA responded to a request for this article but has not yet shared the total number of businesses that have had their grants revoked. Mostly law professors | Sometimes contrarian | Often libertarian | Always independent, Eugene Volokh All rights reserved. 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. Restaurant Revitalization Fund Replenishment Act Introduced : On June 8, 2021, a bipartisan group of Senators and U.S. | "We keep it going.". 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. 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. The restaurant started as a pop-up during the pandemic and later turned into a brick-and-mortar space, closing for four months of renovations and reopening in May. She and her business partner will soon meet with their landlord, who she says has been surprisingly "very cool" about not receiving rent for over a year, to figure out the future. 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. Sign up to receive texts from Restaurant Business on news and insights that matter to your brand. The $28.6 billion Restaurant Revitalization Fund was a popular program, offering grants to independent restaurants to help cover business losses due to the COVID-19 pandemic. [] SBAs leadership is frustrated with this outcome and remains committed to doing everything we can to support disadvantaged businesses getting the help they need to recover from this historic pandemic.. The SBA announced the closure of the Restaurant Revitalization Fund with a final tally of how it awarded the programs $28.6 billion in funding. The latest from Restaurant Business, sent straight to your inbox. 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. Representatives introduced legislation to replenish the Restaurant Revitalization Fund with a $60 billion second round of restaurant relief. Nearly 3,000 restaurateurs approved to receive a Restaurant Revitalization Fund (RRF) grants have been alerted that they wont be getting the money because of court cases that challenge a d their selection on the basis of gender or race. Since the fund closed on May 24, the SBAreceived more than 372,000 applications requesting$76 billion in funds far exceeding available funding. 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 WebSouth China receives no funding from any government for the production of this publication. Number 8860726. "As a small, independent business that is partially owned by women and people of color, I think we're very un-used to pleasant news from a bank. 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. The law As of May 12, the Small Business Administration said those businesses had already applied for $29 billion, more than the fund's total amount. This only happens if legislators Republican senators, especially are motivated to, act, she said. Rather, agencies have a responsibility to decide if there has been a history of discrimination in the particular industry at issue .". As its strong basis in evidence, Defendants point to the factual findings supporting the implementation of Section 8(a) itself in removing obstacles to government contract procurement for minority-owned businesses, including House Reports in the 1970s and 1980s and a D.C. District Court case discussing barriers for minority business formation in the 1990s and 2000s. 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