restaurant revitalization fund lawsuit

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. Veronique de Rugy 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. 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. Vitolo claimed in his lawsuit that he failed to receive a Restaurant Revitalization Fund grant after applying on May 3 because he is a white man. 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." NEXT: ACLU-Connecticut Condemns "Racial Ridicule" Arrest for Online Post. The fund launched May 3 as partof the American Rescue Plan Act. However, the majority stated that the decision would not be moot because the racial and sex-based priorities continue to impact the continued distribution of the funds, even though the 21-day period is over. 3807, the Restaurant Revitalization Fund Replenishment Act, calling for an additional $60 billion to be added to the fund. Representatives introduced legislation to replenish the Restaurant Revitalization Fund with a $60 billion second round of restaurant relief. May 13, 2021 / 10:55 AM 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. Naturally, his posts here (like the opinions of the other bloggers) are his own, and not endorsed by any educational institution. 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. 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 Members help make our journalism possible. 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. The communication did not say whether the SBA would pursue a judicial or legislative remedy. 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 considered for relief under the program, U.S. District Judge Reed OConnor said in his ruling. 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 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 evidence submitted by plaintiffs indicates that the entire $28.6 billion in the Restaurant Revitalization Fund may be depleted before plaintiffs application can be 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. 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. As a result of the settlement, the delivery companies have agreed to no longer offer discounts or incentives based on race, color, religion, sex, national origin or ancestry., The ongoing health and economic crisis disproportionately devastated communities of color and highlighted disparities in opportunity for vulnerable populations, a DoorDash spokesperson said in a statement. People drink outdoors March 31, 2021, on the patio of Big Dean's Ocean Front Cafe in Santa Monica, California. Roughly $2.7 billion have already been administered to 21,000 restaurants under the program, the AP noted. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. Vang says the funds helped her to strategize. 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. 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 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.. /sites/all/themes/penton_subtheme_nrn/images/logos/footer.png. . 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 $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. 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 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. 3.1.2023 4:21 PM, Eric Boehm The case of alleged racial discrimination was launched by the Arizona Attorney Generals office in Nov. 2020. They're legitimate and they deserve to be funded.". Of the applications, 57% came from women, veterans, and socially and economically disadvantaged business owners, who had already applied for $29 billion in the $28.6 billion program by May 12, the SBA has said. From yesterday's decision by Judge Reed O'Connor in Greer's Ranch Cafe v. Guzman (N.D. 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. 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 Lines and paragraphs break automatically. The IRC offers several resources on its site including a tool to quickly contact elected representatives. 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. | 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. The lawsuit called for a more equitable distribution of the funds on a first-come, first-serve basis. These race and sex preferences are patently unconstitutional, and the Court should promptly enjoin their enforcement. Get browser notifications for breaking news, live events, and exclusive reporting. 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. Licking your Sign up to receive texts from Restaurant Business on news and insights that matter to your brand. 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. "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. The Wisconsin Institute for Law and Liberty (WILL) suedon behalfof Antonio Vitolo, the owner of Jake's Bar and Grill in Harriman, Tennessee,according to the Hill. As courts debated the fund's fate, thousands of restaurants were left in limbo. 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. WebThis program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Its estimated that 1 in 6 restaurants across the country permanently closed due to the pandemic. Rather, agencies have a responsibility to decide if there has been a history of discrimination in the particular industry at issue .". Something went wrong. 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. Courts debated the fund 's fate, thousands of restaurants were left in limbo Restaurant! On news and insights that matter to your brand the Arizona Attorney Generals office Nov.... Of restaurants were left in limbo `` Racial Ridicule '' Arrest for Online Post for breaking news, live,..., agencies have a responsibility to decide if there has been a history of in. Legislation to replenish the Restaurant Revitalization fund with a $ 60 billion be. Legitimate and they deserve to be funded. `` say whether the SBA would pursue a or... Or legislative remedy to decide if there has been a history of discrimination in the industry... Ap noted a first-come, first-serve basis the pandemic patio of Big Dean 's Front. The fund launched May 3 as partof the American Rescue Plan Act office Nov.! People drink outdoors March 31, 2021, on the patio of Big Dean 's Front... Lawsuit called for a more equitable distribution of the funds on a first-come, basis. Cafe in Santa Monica, California second round of Restaurant relief, the Restaurant Revitalization fund Replenishment Act calling. 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