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. Of course, the Biden Administrations guidance does not prohibit white business owners from obtaining relief from the fund, it 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. Number 8860726. The group is appealing the decision. Thousands more restaurants received approval notices in the weeks following and were told to expect funds in their bank account within seven business days. 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. 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. 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. 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. A federal judge in Texas issued a preliminary ruling Tuesday which found that the Biden administrations nearly $29 billion restaurant relief fund discriminated against a We 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. "We keep it going.". 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 of Congress have introduced an effort to refill the fund with an additional $60 billion, though some operators worry that a re-up of funds won't be prioritized as pandemic restrictions are lifted and restaurants resume service at full capacity. A letter obtained by Nation's Restaurant News told those applicants awaiting funds: The SBA is not able to pay 2,965 priority applicants including yourself who were previously approved and notified of their approval. The SBA has argued that the decision in this case is moot because the funds have already been mostly distributed. 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. Since the fund closed on May 24, the SBAreceived more than 372,000 applications requesting$76 billion in funds far exceeding available funding. 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. Naturally, his posts here (like the opinions of the other bloggers) are his own, and not endorsed by any educational institution. Email Us To get the Volokh Conspiracy Daily e-mail, please sign up here. | 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. 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 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 "There are $50 billion of applications that are pending right now that are not going to be funded, because the federal dollars aren't there," he said. Other restaurant owners report a similar experience: After days of calls, emails, and messages through the SBA portal and reassurance that the money was still coming, the grants were rescinded. U.S. District Judge Travis McDonough in Knoxville, Tennessee, issued the opinion denying a temporary restraining order last week in thelawsuitbrought by the Wisconsin Institute for Law & Liberty. Eugene Volokh is the Gary T. Schwartz Distinguished Professor of Law at UCLA. The Restaurant Revitalization Fund was practically destined to be oversubscribed. "All the lawsuits go away if the fund is refilled, because everyone receives their money.". An appellate court later overturned McDonoughs decision. 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. Kristen is the creator of two industry newsletters; the first was acquired by a media company in 2016. 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. 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. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. For the first 21 days, the fund was open for applications from women, individuals who are economically or socially disadvantaged, and veterans. During that window, ARPA directs SBA to "take such steps as necessary" to prioritize eligible restaurants "owned and controlled" by "women," by "veterans," and by those "socially and economically disadvantaged." 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. 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.. Lines and paragraphs break automatically. Something went wrong. 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. However, this fund was quickly depleted, and many restaurants are still struggling to keep their doors open. The application portal remained open through Monday because money set aside for establishments with 2019 annual revenue of not more than $50,000 was potentially still available. Given those developments, the SBA alerted 2,965 female and disadvantaged applicants via letter that they would not be getting their grants, even though theyd been informed earlier that theyd been approved and would soon be receiving the funds. newsletter, Sign up for the His claim was approved by the SBA on May 25 prior to the court order, and he received his $104,590 grant on June 1. 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. 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. While this is certainly unfortunate, Congress cannot reasonably have been expected to predict with precision the level of demand for funds nor how the demand would break down between priority and non-priority applications, the judge wrote. 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 SBA will not pay these claims because the legal conclusions in these court rulings would preclude payment. The House Just Passed $42 Billion in Additional Relief for Restaurants, Senate Fails to Pass Additional COVID Relief Funds for Restaurants, What to Know About Restaurant Revitalization Funds, According to the Head of the Small Business Administration, How to Apply for and Receive Restaurant Relief Funds, Lawmakers Request Additional $60 Billion in Restaurant Relief Funds, How Is the CARES Act Going for Restaurants? Sign up to receive texts from Restaurant Business on news and insights that matter to your brand. 2021 CBS Interactive Inc. All Rights Reserved. Thousands of others lost out on aid they were expecting thanks to lawsuits backed by conservative groups. It's not known how many restaurants in Michigan applied for RRF funding. At issue in their latest suit is the $28.6 billion Restaurant Revitalization Fund created by the Biden administrations American Rescue Plan Act and launched earlier this month. This case underscores that there was a lot of nervousness in the restaurant industry that the $28.6 billion was going to go fast, Sean Kennedy, vice president for public affairs with the National Restaurant Association told Nations Restaurant News. 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. 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. 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. 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, socially disadvantaged farmers and ranchers., Few industries have been harder hit by lockdowns and restrictions than the restaurant and bar industry., Lawmakers trounce Lobbyists in annual charity hockey game, These four House Republicans broke with the GOP to oppose inflation estimates bill, Biden mocks Rep. 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The communication did not say whether the SBA would pursue a judicial or legislative remedy. 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. They're legitimate and they deserve to be funded.". A bipartisan group of lawmakers, according to the Hill,onJune 10 introduced the Restaurant Revitalization Fund Replenishment Actof2021 to add an additional $60 billion to the fund. Members help make our journalism possible. WebSouth China receives no funding from any government for the production of this publication. 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. City of Richmond v. J.A. The $28.6 billion Restaurant Revitalization Fund has only been processing and funding requests from businesses owned by women; veterans; or socially and Greer filed suit, claiming that the SBAs policy violates the Equal Protection Clause of the Constitution. Number 8860726. Prioritizing the applicants was mandated byCongress. Representatives introduced legislation to replenish the Restaurant Revitalization Fund with a $60 billion second round of restaurant relief. The Restaurant Revitalization Fund has been depleted. But not everyone waseligible or will receive funds. The restaurant was named for Tom Pisha-Duffly's grandmother his oma who passed away from COVID-19 in the early days of the pandemic. On Friday, June 11, the Small Business Administration paused the disbursement of pandemic relief funds to thousands of minority-owned businesses. Tex. 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. One was an air ball., Go big or go home. ): 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 . 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. 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. 3.1.2023 2:50 PM, 2022 Reason Foundation | THE HILL 1625 K STREET, NW SUITE 900 WASHINGTON DC 20006 | 202-628-8500 TEL | 202-628-8503 FAX. First published on May 13, 2021 / 10:55 AM. 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. Philip Greer, the owner of a cafe in Texas, wanted to apply to the Small Business Administrations Restaurant Revitalization Fund (RRF) for help after his cafe lost $100,000 in revenue because of the pandemic. The restaurants that sued the SBA for discrimination received almost $1 million in Restaurant Revitalization Fund grants The SBA previously dropped prioritization of 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. 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. 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. We've never been in that position before," said Mariah Pisha-Duffly, a co-owner. She called the SBA's hotline and was told the money was on its way. 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. Rather, agencies have a responsibility to decide if there has been a history of discrimination in the particular industry at issue .". / CBS News. Its estimated that 1 in 6 restaurants across the country permanently closed due to the pandemic. 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. Vitolo applied to receive federal relief from the $28.6 billion Restaurant Revitalization Fund that was created as part of the American Rescue Plan Act. 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. 3.2.2023 12:01 AM, Jacob Sullum 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. 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. Get todays need-to-know restaurant industry intelligence. A similar lawsuit, filed in Tennessee in May, also alleged that the program was discriminating against white people by prioritizing minority-owned businesses. 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 To date, the administration has distributed $2.7 billion in aid to 21,000 restaurants since the program opened May 3. 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. 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 Lord Mansfield (William Murray), Chief Justice of King's Bench and developer of English commercial law, was born in Scone, Scotland, on March 2, 1702.Learn more about Lord Mansfield from the Biddle Law Library, University of Pennsylvania Law School. Nation's Restaurant News is part of the Informa Connect Division of Informa PLC. "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. Support local journalism and become a digital subscriber to the Free Press. Licking your A little over a week later, more restaurant owners received emails telling them that their previously approved grants would not be disbursed. Issue. `` within seven Business days the Gary T. Schwartz Distinguished Professor of Law UCLA... 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