AFL Files Request with Court to Hold SBA Accountable for Damages for Discriminating Against Additional Restaurants and Restaurant Owners Based on Their Race and Sex When Administering the Restaurant Revitalization Fund

Washington, D.C. — Today, in the U.S. District Court for the Northern District of Texas, America First Legal moved to amend its existing case against the SBA for using racially preferential treatment in administering COVID relief through the Restaurant Revitalization Fund. AFL’s amended complaint seeks millions of dollars in damages against the SBA Administrator for using patently unconstitutional race and sex-based preferences in administering the Restaurant Revitalization Fund. 

Notably, until the federal courts enjoined the use of these unconstitutional preferences, the SBA did not award any funding to restaurants whose owners did not meet the overtly discriminatory criteria outlined in the Restaurant Revitalization Fund. Today, the RRF is out of money, leaving countless applicants who were denied relief based on the color of their skin or their sex.

The bottom line is this: SBA rushed money out the door to pay minority and female applicants before applications from white men could be considered. Had it not been for the federal-court injunctions, few, if any, white men would have obtained relief from the Fund. Despite securing results for its original clients in this case, countless other restaurateurs were left on the sidelines because of the SBA’s discriminatory acts—even though they applied almost immediately after the application period opened. AFL is suing to recover the money that these restaurateurs would have obtained under a colorblind and sex-neutral application process.

Specifically, with its amended complaint, AFL is asking the Court to:

  • Award two restaurants and restaurant owners monetary damages against SBA Administrator Guzman that they would have obtained through the Restaurant Revitalization Fund;

  • Enter a permanent injunction enjoining the SBA and SBA Administrator Guzman from recovering funds disbursed to AFL’s other plaintiffs in the case;

  • Declare the use of race and sex-based preferences in the Restaurant Revitalization Fund unconstitutional;

  • Declare that the SBA and SBA Administrator Guzman violated the constitutional rights of restaurants and restaurant owners by discriminating on account of race and sex in administering the Restaurant Revitalization Fund;

  • Award costs and attorneys’ fees;

  • Award all other relief that the Court deems just, proper, or equitable. 

Statement From America First Legal President Stephen Miller: 

“America First Legal won a historic victory against the Biden Administration by shutting down the SBA’s discriminatory administration of the Restaurant Revitalization Fund, but the fight is not over. Other restaurant owners who were discriminated against must be made whole. Many incredible American restaurant owners lost millions of dollars because of these unconstitutional exclusions and these Americans are entitled to damages for violations of their constitutional rights. If federal officials violate the constitutional rights of American citizens, we will zealously pursue a remedy for such reprehensible conduct.” Stephen Miller said. 


Read the Amended Complaint here.

Read the Motion for Leave to File Second Amended Complaint here.

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