restaurant revitalization fund lawsuitrestaurant revitalization fund lawsuit
. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Naturally, his posts here (like the opinions of the other bloggers) are his own, and not endorsed by any educational institution. 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. In at least one instance, the plaintiff was assisted in bringing the legal action by a conservative group that objected to the SBAs acknowledged bias. A little over a week later, more restaurant owners received emails telling them that their previously approved grants would not be disbursed. 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. 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. 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. Contact Detroit Free Press food writer Sue Selasky and send food and restaurant news to: 313-222-6872 or sselasky@freepress.com. 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 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. Smooth and cool., Do Not Sell/Share My Personal Information. For the first 21 days, the fund was open for applications from women, individuals who are economically or socially disadvantaged, and veterans. 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. And its cuts must be informed by data that suggest intentional discrimination. Or we could be skating through until next year," said Stephanie Watanabe, co-owner of Coast and Valley, a wine bar in Brooklyn. 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 They weren't alone Over 3,000 businesses received notices that their grants had been canceled. In a similar case, a federal district judge in Texas issued a preliminary ruling in May that the Restaurant Revitalization Fund discriminated against white restaurant operator, Philip Greer, owner of Greers Ranch Caf in Stephenville, Texas, alleging that the federal government violated the Constitutions Equal Protection Clause. She launched her second newsletter, Expedite, independently three years later to continue chronicling the evolving restaurant technology industry. The Restaurant Revitalization Fund was introduced as part of President Biden's American Rescue Plan, funneling billions directly to independent restaurants. Sign up here. Something went wrong. She called the SBA's hotline and was told the money was on its way. "You know not to depend on stuff until it's in your account but when you get an official letter, an official approval in a grant program from the government you have reason to believe you can count on it," she said. But a new federal lawsuit filed Wednesday by a conservative law firm claims that's discrimination. 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 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. But they aren't the only restaurant owners waiting for much-needed government aid. Please enter a valid email and try again. This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. It's not known how many restaurants in Michigan applied for RRF funding. They had applied for federal relief during the first 21 days of the Revitalization program, when priority was given to those groups because they were regarded as particularly in need of financial assistance. 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. "This is critical in the first-come first-served program in order to ensure that those businesses are able to apply," she said. 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. Representatives introduced legislation to replenish the Restaurant Revitalization Fund with a $60 billion second round of restaurant relief. /sites/all/themes/penton_subtheme_nrn/images/logos/footer.png. To date, the administration has distributed $2.7 billion in aid to 21,000 restaurants since the program opened May 3. / CBS News. 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. Veronique de Rugy The communication did not say whether the SBA would pursue a judicial or legislative remedy. Some of these emails indicated an application had been denied and that the SBA would no longer consider it. At The Weisblatt Firm, our legal team supports all types of businesses, including hedge funds. 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. 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 Related: The Restaurant Revitalization Fund application portal is closing on May 24, When the government promulgates race-based policies, it must operate with a scalpel, the majority opinion stated. 3807, the Restaurant Revitalization Fund Replenishment Act, calling for an additional $60 billion to be added to the fund. Since the fund closed on May 24, the SBAreceived more than 372,000 applications requesting$76 billion in funds far exceeding available funding. 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. Not Great, What the Second Round of CARES Act Funding Means for Restaurants, The Coronavirus Stimulus Package: What Everyone in the Restaurant Industry Should Know, Help Is on the Way for Restaurants. From yesterday's decision by Judge Reed O'Connor in Greer's Ranch Cafe v. Guzman (N.D. 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. 'S hotline and was told the money was on its site including a tool quickly. 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