Almost 3,000 applicants will not be receiving their Restaurant Revitalization Fund grants in the wake of discrimination lawsuits. The 2 lawsuits that were won in Tennessee and Texas last week effectively barred the SBA from distributing the grants it had previously awarded to priority groups including women, veterans, and socio-economically disadvantaged groups – on the basis of race and sex discrimination. As such, the SBA has no choice but to withhold said grants, even from those who had already been granted approval.
This news comes at the heels of widespread criticism towards the SBA concerning its lack of adequate funding from the moment the RRF first opened applications.
Unfortunately, all there is to do now is wait for Congress to vote on the legislation for a $60 billion replenishment of the RRF, which has yet to be scheduled.
2 important notes for business owners:
- Businesses do not need to reapply if Congress approval is granted
- Businesses can apply for Economic Injury Disaster Loans right now while they wait for more action
Founded by attorneys Andreas Koutsoudakis and Michael Iakovou, KI Legal focuses on guiding companies and businesses throughout the entire legal spectrum as it relates to their business including day-to-day operations and compliance, litigation and transactional matters.
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