/ CBS News. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. | However, this fund was quickly depleted, and many restaurants are still struggling to keep their doors open. Something went wrong. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Uno to sell frozen pizza business to Great Kitchens Food Co. Red Robin's recovery gets off to a fast start. 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. Her work has appeared in Food & Wine, Insider, Eater, the San Francisco Chronicle, and more. Imagine relaxing with friends in your own backyard, sipping cocktails made from in-house infused spirits or wine from an eclectic selection. Roughly $2.7 billion have already been administered to 21,000 restaurants under the program, the AP noted. An online portal that served as an information and application hub for the program will close on July 14, leaving hundreds of thousands of restaurants out of the grant program. "Socially disadvantaged individuals are those who have been 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. 3.1.2023 4:21 PM, Eric Boehm There may be hope for those who missed a chance at funding. Defendants argue the race-conscious rules serve a compelling interest and are narrowly tailored, satisfying strict scrutiny. The programs administrator, the U.S. Small Business Administration, hadnt hidden that preference, just as it had acknowledged setting aside $5 billion of the funds $28.6 billion for very small restaurant companies. "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. 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. 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 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. U.S. District Judge Travis R. McDonoughsoriginal ruling stated that the plaintiffs argument had failed to rebut the federal governments priority in halting the impacts of historical discrimination based on sex and race. There was no word from the Justice Department on whether they would appeal the ruling. He finished every time., Lifes a beach under the basket for Lemonts Miles Beachum. Smooth and cool., Do Not Sell/Share My Personal Information. He described her as a scrappy small business owner herself. Penn Hotel Sports & Raw Bar got $640,425; Lost Cajun received 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. [] 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 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.. The Restaurant Revitalization Fund was introduced as part of President Biden's American Rescue Plan, funneling billions directly to independent restaurants. The $28.6 billion Restaurant Revitalization Fund has only been processing and funding requests from businesses owned by women; veterans; or socially and 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 letter stated. NEXT: ACLU-Connecticut Condemns "Racial Ridicule" Arrest for Online Post. 3.1.2023 2:50 PM, 2022 Reason Foundation | As to race-based classifications, Plaintiffs challenge SBA's implementation of the "socially disadvantaged group" and "socially disadvantaged individual" race-based presumption and definition from SBA's Section 8(a) government-contract-procurement scheme into the RRF- distribution-priority scheme as violative of the Equal Protection Clause. Ittook issue with the third-party delivery companiespromotions that waived delivery fees for Black-owned restaurants in the wake of George Floyds murder. Earlier this year, the Restaurant Revitalization Fund was approved to support struggling small businesses. Experience: Kristen Hawley has nearly two decades of experience in the media industry. Assuming arguendo that the evidence is relevant, even the case cited by Defendants recognizes the well-established principle about the industry-specific inquiry required to effectuate Section 8(a)'s standards: "The fact that Section 8(a) is constitutional on its face, however, does not give the SBA or any other government agency carte blanche to apply it without reference to the limits of strict scrutiny. 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. 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"). TheSBAdoes not have a comment, however, theSBAis working to ensure the economic aid is accessible to all that are eligible, including those hit hardest, while protecting program integrity and ensuring as quick distribution as possible of the aid, a representative from the Small Business Administration said in a statement. 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. 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. Lines and paragraphs break automatically. He asked the court to issue a temporary restraining order prohibiting the SBA from administering the RRF on the basis of sex or race. Please enter valid email address to continue. 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 $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. The first three weeks of the program prioritized certain groups of business owners in the name of equity. The priority policy was challenged with lawsuits alleging that the policy discriminated against white men. 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. 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. WebNew Leaf Initiative Inc (EIN# 883342112) is an tax exempt organization filed with Internal Revenue Service (IRS). 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. newsletter, Sign up for the The lawsuits, representing the interests of a handful of restaurants owned and operated by white men, alleged discrimination because the application process prioritized applications based on race and sex. 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. Kristen is the creator of two industry newsletters; the first was acquired by a media company in 2016. 3.1.2023 5:35 PM, Joe Lancaster Thousands of others lost out on aid they were expecting thanks to lawsuits backed by conservative groups. LPG Charity Fund 20811 Katie Marie Ct. | Cypress, TX 77433 Phone: 281 797-5927. 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. 3.2.2023 12:01 AM, Jacob Sullum 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. Oops. 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 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 latest from Restaurant Business, sent straight to your inbox. "If we are In response to questions from The Hill on the recent legal complaints, the SBA said it does not comment on pending litigation. Follow @SusanMariecooks on Twitter. First published on May 13, 2021 / 10:55 AM. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Vang added that it hasn't been easy and cited the laborshortage as the reason labor supply for needing to cut back on employee hours and days of operation. Get todays need-to-know restaurant industry intelligence. The fund launched May 3 as partof the American Rescue Plan Act. 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. 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. 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. /sites/all/themes/penton_subtheme_nrn/images/logos/footer.png. . The RRF is aimed at aiding restaurants, an industry decimated by the pandemic. 5.19.2021 3:46 PM. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. "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. 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. The SBA argued that the government has a compelling interest in redressing the effects of past and present discrimination against minority-owned small businesses and that the prioritization scheme furthers that interest. "We're in a food desert," she said. A restaurant group in Detroit gave all of its workers a week off, fully paid. Naturally, his posts here (like the opinions of the other bloggers) are his own, and not endorsed by any educational institution. This only happens if legislators Republican senators, especially are motivated to, act, she said. Accessibility | Nation's Restaurant News is part of the Informa Connect Division of Informa PLC. Sign up to receive texts from Restaurant Business on news and insights that matter to your brand. That suit is still pending, but unlike in the Texas case, Tennessee judge Travis McDonough denied the groups request for an injunction that wouldve paused the disbursement of funds. May 13, 2021 / 10:55 AM "This is what we do," he said. 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. According to the lawsuit, Janice Smith and Jason Smith applied for assistance from the Restaurant Revitalization Fund on May 5 and discovered that they were entitled to more than $187,000 in relief. 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. Federal judges in Texas and Tennessee agreed, and the SBA halted all payments to priority applicants. The evidence submitted by plaintiffs indicates that the entire $28.6 billion in the Restaurant Revitalization Fund may be depleted before plaintiffs application can be We've never been in that position before," said Mariah Pisha-Duffly, a co-owner. 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. The judge wrote that Congress has gathered myriad evidence suggesting that small businesses owned by minorities have suffered more severely than other kinds of businesses during the COVID-19 pandemic, and that the Governments early attempts at general economic stimulus disproportionately failed to help those businesses directly because of historical discrimination patterns., Similarly, McDonough said Congress had before it evidence showing that woman-owned businesses suffered historical discrimination that exposed them to greater risks from an economic shock like COVID-19, and that they received less benefit from earlier federal COVID-19 relief programs.. At The Weisblatt Firm, our legal team supports all types of businesses, including hedge funds. The Small Business Administration declined to comment on pending litigation. According to the lawsuit, Janice Smith and Jason Smith applied for assistance from the Restaurant Revitalization Fund on May 5 and discovered that they were entitled 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. Business owners who spent months waiting for relief eagerly moved forward: The owners of a small wine bar in Brooklyn told their landlord that they'd soon pay the 15 months of back rent they owed. The owner of Bangkok 96 Street Food inside the Detroit Shipping Co.in Detroit applied for and received funds. His rebound downs Marian Catholic. 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. In an April interview with Food & Wine, SBA Administrator Isabella Casillas Guzman explained the importance of that structure. For the first 21 days, the fund was open for applications from women, individuals who are economically or socially disadvantaged, and veterans. Indeed, SBA Administrator Isabel Guzman proudly cited the preferences as a way of helping members of the industry who were most in need. Greer filed suit, claiming that the SBAs policy violates the Equal Protection Clause of the Constitution. It's not known how many restaurants in Michigan applied for RRF funding. Most young men are single. [The defendants' evidence] lacks the industry-specific inquiry needed to support a compelling interest for a government-imposed racial classification. 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. 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. 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. They weren't alone Over 3,000 businesses received notices that their grants had been canceled. 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. "I'm going to try to restart my business because I have no choice other than personal bankruptcy," she said. Trump successfully chilled FBI from being willing to investigate anything Christie: Trump grand jury foreperson did a lot of damage to case, Trumps polling strength causes heartburn for Senate GOP, Bill Maher: I am afraid of Trump on a very personal level. Its about relief money that was supposed to go first to women and minority-owned restaurant owners. The SBA said it had $50 billion in unfilled applications from hundreds of thousands of restaurants made before the initial $28.6 billion was exhausted. These race and sex preferences are patently unconstitutional, and the Court should promptly enjoin their enforcement. The plaintiffs argue that even though the distributed grants cannot be returned, the Sixth Circuits decision will have further-reaching impacts on COVID-19-related federal aid: The Sixth Circuit decision sets the precedent that racial and gender priorities such as the ones in American Rescue Plan Act are unconstitutional, Rick Esenberg, president and general counsel for the WisconsinInstitute for Law and Libertysaid in a statement. The nearly 3,000 restaurants whose application approvals were rescinded will be paid once it completes processing all previously filed non-priority applications, and only then if the RRF is not first exhausted, the SBA told The New York Times. Privacy Policy | But not everyone waseligible or will receive funds. 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. 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