Priority Groups No Longer Receiving SBA Relief Payments

June 15, 2021

Photo by Karolina Grabowska from Pexels

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

This information is the most up to date news available as of the date posted. Please be advised that any information posted on the KI Legal Blog or Social Channels is being supplied for informational purposes only and is subject to change at any time. For more information, and clarity surrounding your individual organization or current situation, contact a member of the KI Legal team, or fill out a new client intake form.