Judge keeps restaurant aid priority for women, minorities

Judge keeps restaurant aid priority for women, minorities

SeattlePI.com

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NASHVILLE, Tenn. (AP) — A federal judge has ruled against a conservative legal group that sought an immediate halt to the priority status for restaurants and bars owned by women and certain minorities in President Joe Biden's COVID-19 relief package.

U.S. District Judge Travis McDonough in Knoxville, Tennessee, issued the opinion denying a temporary restraining order last week in the lawsuit brought by the Wisconsin Institute for Law & Liberty. The group is appealing the decision.

The judge wrote that “Congress has gathered myriad evidence suggesting that small businesses owned by minorities ... have suffered more severely than other kinds of businesses during the COVID-19 pandemic, and that the Government’s early attempts at general economic stimulus ... disproportionately failed to help those businesses directly because of historical discrimination patterns.”

Similarly, McDonough said “Congress had before it evidence showing that woman-owned businesses suffered historical discrimination that exposed them to greater risks from an economic shock like COVID-19, and that they received less benefit from earlier federal COVID-19 relief programs.”

The lawsuit targets the three-week period from May 3 until Monday during which the $28.6 billion Restaurant Revitalization Fund has only been processing and funding requests from businesses owned by women; veterans; or socially and economically disadvantaged individuals.

Eligibility was slated to open broadly afterward. However, the Small Business Administration reported on May 18 that it had already received more than 303,000 applications representing over $69 billion, with nearly 38,000 applicants already approved for more than $6 billion. Of the applications, 57% came from women, veterans, and socially and economically disadvantaged business owners, who had already...

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