Last Friday, June 11th, the Small Business Association announced that it had suspended its restaurant revitalization fund on 2,965 small businesses when a Texas judge issued an injunction after three white business owners with it Allegations of discrimination. The lawsuit alleged that the SBA’s decision to prioritize applications from companies run by socially and economically disadvantaged groups such as women, veterans and people of color was unconstitutional.
However, it turns out that the plaintiffs in the case – Eric Nyman of the Penn Hotel Sports & Raw Bar in Hershey, Pennsylvania, and Janice and Jason Smith of the Lost Cajun in Keller, Texas – received huge bailouts themselves for just a week after the lawsuit was filed, according to a report in the . Nyman filed for relief on May 3 and was advised by the SBA that he was entitled to over $ 640,000 in relief. On June 1, the SBA paid the full $ 640,425 to Nyman, despite his complaint that minority-owned companies would receive preferential treatment.
The lawsuit was supported by the conservative legal group America First Legal, an organization founded by former Trump advisors Stephen Miller and Mark Meadows. And while Nyman and the Smiths have been paid off from the Restaurant Revitalization Fund, the nearly 3,000 women and black-run businesses will remain pending the lawsuit. The SBA told the Times Minority-owned companies whose provals have been revoked as a result of the Nyman and Smiths lawsuit will be paid “as soon as it finishes processing all prior non-priority applications and only if the RRF is not exhausted first „.