Restaurant innovation fund primarily goes to minorities, women and ‘socially disadvantaged’

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The government’s Small Business Association has finally launched a COVID restaurant renewal fund to get the hospitality industry back on its feet – but it will give money to women, veterinarians, minorities and the ‘socially disadvantaged’ first and everyone else will have to wait another three weeks . before they can apply.

The fund has been approved as part of the American Rescue Plan Act of 2021. It has $ 28.6 billion in government funding.

Of this, $ 9 billion has been set aside so far; $ 5 billion is allocated to companies that raised up to $ 500,000 in 2019, $ 4 billion is reserved for companies that received up to $ 500,000 and $ 1.5 million in 2019, and $ 500 million is reserved for companies that raised up to $ 500,000 have included. $ 50,000 that year. It is unclear where the remaining $ 19.6 billion will go.

There is a wide scope of application: it includes not only restaurants, but also bars, bakeries, food stands, caterers, breweries, wineries and inns can all apply as well. After campaigning for more than a year, the restaurant industry rejoiced when it was announced.

But as of Monday and for the next 21 days, the only applications accepted will be from women, veterinarians or people classified as ‘socially and economically disadvantaged’.

Restorers who have struggled in the past year are lashing out at the rule they believe is discriminatory. They also fear that there will not be enough left in the fund once the priority groups have all been paid.

The fund has been approved as part of the American Rescue Plan Act of 2021. It has $ 28.6 billion in government funding.  It finally launched on Monday

The fund has been approved as part of the American Rescue Plan Act of 2021. It has $ 28.6 billion in government funding. It finally launched on Monday

These are the priority groups eligible to apply for money from the Restaurant Revitalization Fund released Monday after months of industry campaigning

These are the priority groups eligible to apply for money from the Restaurant Revitalization Fund released Monday after months of industry campaigning

On its website, the SBA defines socially disadvantaged people as ‘those who, because of their identity as a member of a group, are exposed to racial or ethnic prejudice or cultural prejudice, regardless of their individual qualities’.

Economically disadvantaged people are defined as’those socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to reduced capital and credit opportunities compared to others in the same industry who are not socially disadvantaged. ‘

The SBA on Tuesday couldn’t guarantee that all the money will not be used up in the first round of filings, leaving hundreds of thousands of other restaurant workers across the country.

It is unclear how a business owner should prove whether or not he is part of a socially or economically damaged group.

The fund will allocate up to $ 5 million per restaurant or location, and $ 10 million to a single applicant who has multiple locations.

Market leaders told DailyMail.com on Tuesday that there were no guarantees that there would be enough for everyone to receive some money after the priority groups are processed.

Majority leader Schumer has said on multiple occasions that he will fight to replenish the fund should it run out, and amid all political divisions, there is bipartisan support to help restaurants, so we, along with others, will fight for more funding if they need it. , ”Said Andrew Rigie, director of the NYC Hospitality Alliance.

Fury: Many were upset about the prioritization of certain groups and said it was discriminatory

Fury: Many were upset about the prioritization of certain groups and said it was discriminatory

An estimated 100,000 restaurants across America have been forced to close due to the pandemic and hundreds of thousands of restaurant workers have lost their jobs

An estimated 100,000 restaurants across America have been forced to close due to the pandemic and hundreds of thousands of restaurant workers have lost their jobs

Others called the group prioritization process “discriminatory.”

“Is this even legal?” they smoked.

Since the pandemic began, an estimated 100,000 restaurants across America have been forced to close their doors, leaving millions unemployed.

In December 2020, 400,000 restaurant workers alone lost their jobs.

New York City was hit hardest.

The city has more restaurants per square mile than anywhere else in America, but has been subject to the most stringent lockdowns, including forcing people to buy food and drink and banned from eating indoors for months despite low COVID-19 numbers.

It’s still not normal.

Currently, restaurants can only let in up to 50 percent of their normal capacity.

That will increase to 75 percent on May 7 and 100 percent by May 19, provided restaurants can keep their customers apart with barriers and social distance.

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