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Plaintiffs Opposing SBA Priority Period Receive Funds

Specialty Food Association

The two plaintiffs in a suit that claimed the Small Business Administration’s decision to prioritize Restaurant Revitalization Fund applications from businesses run by socially and economically disadvantaged groups have both received relief fund themselves a week after the suit was filed, reports Eater. Eric Nyman of the Penn Hotel Sports & Raw Bar in Hershey, Pennsylvania received $640,425 in relief on June 1. Plaintiffs Janice and Jason Smith of the Lost Cajun in Keller, Texas also received funds, though the report does not specify how much.

As a result of the lawsuit, a Texas judge issued an injunction on payment to 2,965 small businesses. The SBA noted that these companies will be paid “once it completes processing all previously filed non-priority applications, and only then if the R.R.F. is not first exhausted.” Full Story

Related: SBA Revokes Restaurant Revitalization Fund ApprovalsNew York Opens Small Business Recovery Grant Program.

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