The U.S. Small Business Administration (SBA) will not be able to disburse Restaurant Revitalization Fund awards.
The Umatilla Electric Cooperative’s Business Resource Center received word from the SBA that the decision is due to several lawsuits.
The SBA issued the following statement:
“Through the American Rescue Plan Act, the SBA launched the Restaurant Revitalization Fund, which prioritized applications from small businesses owned and controlled by women, veterans, and socially and economically disadvantaged individuals for the first 21 days of the program. After SBA launched the Restaurant Revitalization Fund, three lawsuits were filed challenging the 21-day priority application period — one in the Eastern District of Tennessee and two in the Northern District of Texas. These lawsuits have led to three adverse court rulings against the SBA.
The SBA is not able to pay 2,965 priority applicants who were previously approved and notified of their approval. SBA will not pay these claims because the legal conclusions in these court rulings would preclude payment. The U.S. Department of Justice, on behalf of the SBA, filed a notice and a declaration in the Northern District of Texas and the Eastern District of Tennessee to notify the courts that these 2,965 payments would not be made.
SBA’s leadership is frustrated with this outcome and remains committed to doing everything we can to support disadvantaged businesses getting the help they need to recover from this historic pandemic.”
For those who want to check on the status of their Operational Cost Assistance application with Business Oregon, the Small Business Navigator hotline is 833-604-0880.
