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 In determining the degree of diminished credit and capital opportunities the Administration shall consider, but not be limited to, the assets and net worth of such socially disadvantaged individual." 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. newsletter, Sign up for the A little over a week later, more restaurant owners received emails telling them that their previously approved grants would not be disbursed. As of May 12, the Small Business Administration said those businesses had already applied for $29 billion, more than the fund's total amount. WebSouth China receives no funding from any government for the production of this publication. She's spent the last 10 years writing about restaurant technology and the future of hospitality and was among the first journalists to cover these topics with regularity. "We keep it going.". A court initially rejected the argument, but the decision was reversed upon appeal, and the plaintiffs prevailed in the other two actions. Get browser notifications for breaking news, live events, and exclusive reporting. 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: . | 3807, the Restaurant Revitalization Fund Replenishment Act, calling for an additional $60 billion to be added to the 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. 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. (Note: the Reuters piece refers to the restaurant as Blessed Cajuns, which is the limited liability corporation that operates the Lost Cajun.). 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.". 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. 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. A bipartisan group of lawmakers, according to the Hill , on June 10 introduced the Restaurant Revitalization Fund Replenishment Act of 2021 to add an additional $60 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. The latest from Restaurant Business, sent straight to your inbox. Number 8860726. Rather, agencies have a responsibility to decide if there has been a history of discrimination in the particular industry at issue .". She's the founder of Expedite, a weekly restaurant technology newsletter highlighting news and big ideas about the future of the restaurant industry. (Damian Dovarganes/AP). The Wisconsin Institute for Law & Liberty (WILL) filed the lawsuit on behalf of Antonio Vitolo, the owner of Jakes Bar and Grill in Harriman, Tenn., who said he applied for a grant from the fund on May 3, but that he was told by the SBA that it would only process and fund priority group applications in the first 21 days. 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 finished every time., Lifes a beach under the basket for Lemonts Miles Beachum. Plaintiff Antonio Vitolo, owner of Jakes Bar and Grill in Harriman, Tennessee, applied for aid on May 3 but doesnt qualify as a white male, according to the lawsuit, which argues white men are being pushed to the back of the line for aid for their eateries. Naturally, his posts here (like the opinions of the other bloggers) are his own, and not endorsed by any educational institution. 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. Veronique de Rugy Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. Something went wrong. Its about relief money that was supposed to go first to women and minority-owned restaurant owners. 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. 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. CBS News reporter covering economic policy. "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. "We're in a food desert," she said. To proceed based on this interest, Defendants must provide a "strong basis in evidence for its conclusion that remedial action was necessary.". Representatives introduced legislation to replenish the Restaurant Revitalization Fund with a $60 billion second round of restaurant relief. Earlier this year, the Restaurant Revitalization Fund was approved to support struggling small businesses. 3.1.2023 2:50 PM, 2022 Reason Foundation | Senate group wades into tough talks on Social Security. 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. 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. 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. 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.. Vitolo splits the ownership of Jakes Bar & Grill with his wife, who is Hispanic, but the SBA required a business to be at least 51% owned by a woman, veteran and/or socially or economically disadvantaged individual in order to be eligible within the three-week prioritization window. In 2018, Michigan had 16,543 eating and drinking places, according to state data from the National Restaurant Association. The Biden administration has vowed that it will continue to fight the Texas judges injunction in court, but it remains a mystery when Restaurant Revitalization Fund applicants who applied as socially disadvantaged individuals will be able to receive the funds they need. You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site. The Restaurant Revitalization Fund was introduced as part of President Biden's American Rescue Plan, funneling billions directly to independent restaurants. Miller called the ruling, the first, but crucial, step towards ending government-sponsored racial discrimination, and railed against Critical Race Theory, which he characterized as a new wave of government discrimination., Uganda dispatch: new anti-homosexuality bill to be presented to Parliament years after previous legislation was overturned in court, Pakistan dispatch: political plays risk economic instability as IMF negotiations drag on, The Supreme Courts Radical Second Amendment Jurisprudence is Sowing Chaos in the Lower Courts, The Rule of Law in Ukraine: A Cornerstone to International Stability for the Future, How the Lives of Ukraines Law Students Have Changed in the Year Since Russia Invaded, Making Peace with Native Title in Australia: How a Treaty Can Unlock Change. The Penn Hotel Sports and Raw Bar was one restaurant that filed aa lawsuit for discrimination and received funds. In a recent Zoom call with independent restaurant operators, Erika Polmar, executive director of the Independent Restaurant Coalition (IRC) said that it's unlikely the measure will pass as a standalone bill, but instead might be added to a reconciliation package like the bipartisan infrastructure package, potentially in July. 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. Kristen is the creator of two industry newsletters; the first was acquired by a media company in 2016. 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. Indeed, SBA Administrator Isabel Guzman proudly cited the preferences as a way of helping members of the industry who were most in need. 5.19.2021 3:46 PM. And its cuts must be informed by data that suggest intentional discrimination. Federal judges in Texas and Tennessee agreed, and the SBA halted all payments to priority applicants. People drink outdoors March 31, 2021, on the patio of Big Dean's Ocean Front Cafe in Santa Monica, California. But on Wednesday, the agency announced it had already received more than 147,000 applications from women, veterans and other disadvantaged restaurant owners in just over a week, requesting $29 billion in funds. "If we are Oops. Terms Of Use, Federal Race-/Sex-Based Restaurant Revitalization Fund Grants Blocked, The Government Is Subsidizing Microchip FirmsWhile Making It More Expensive To Produce Microchips, Fox's Excuses Reinforce Dominion's Defamation Case, FDA Cracks Down on Animal Tranquilizer That Is Sometimes Mixed With Fentanyl, Ohio Woman Says Cops Broke Her Wrist for Recording During Traffic Stop, DeSantis' Disney Drama Turns Culture War Into Political Gains. 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. Tex. 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. This is ugly, pernicious, and toxic. 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 RRF is aimed at aiding restaurants, an industry decimated by the pandemic. Weeks later, approvals in-hand, they learned that the relief funds they were promised weren't coming. 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.
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