For some restaurants, stalled COVID aid is a recipe for financial disaster

On Sunday, March 15, 2020, my restaurant Bittersweet closed to an almost empty dining room. A storm was coming; I could feel it, and I recommended employees pick up groceries and supplies on their way home. They told me I was being dramatic.

Covid 19 came through like a hurricane, financially leveling and psychologically destroying the restaurant industry. It emptied our bank accounts and swept away our customers, staff, and our spirits. We were abandoned by our government – given minimal health guidance and no financial support.

After several months, one of my businesses, Raleigh Provisions, an independent retail shop, closed permanently. But Bittersweet survived due to an understanding landlord and the total depletion of my personal savings. It was a heartbreaking change to go from 40% growth from 2017-2019 to a 70% drop in business over the course of the year. Little did I know my problems were only beginning.

I was determined to bounce back. The staff and I got vaccinated as soon as possible and looked forward to re-opening our doors to customers. But we were still financially crippled, lacking funds for updating equipment, gathering supplies, and hiring more employees. And honestly, we were all tired. During the last 16 months, we worked harder than ever before to pivot to take-out and counsel staff through unemployment and stress. Owners across the country were desperately pulling together to help each other wade through grants and loans over Zoom and frantic text messages.

Finally, Congress listened to our cries for help and provided a lifeline through the Restaurant Revitalization Fund (RRF) and $28.6 billion in Small Business Administration (SBA) grants to restaurants, bars, and other food/beverage businesses. A special priority application window was created for women, veteran, and minority-owned businesses. The grants were first-come, first-serve, so I applied in the first 10 minutes the portal opened on May 3.

I became nervous when other owner-friends received approval, but I heard nothing. On May 18, the SBA approved my request and indicated the funds would be wired into my bank account in three to seven business days.

Then things got dark again. A week passed, no money. All of the other owners I knew got their money within four days of approval. June arrived and I contacted SBA and received a second response reassuring me. The agency said the funds would be in my account between seven and 14 business days. My relief was short-lived, and I learned I was not alone. Reddit discussions had posts from thousands of restaurants approved between May 14-20, that seemed to be trapped in some kind of black-hole-clerical error. Approved, but not receiving funds.

I had already made financial decisions based on my approval which included onboarding new hires and advertising. We engaged vendors on equipment improvements and updated/elevated our menu to welcome customers back. We looked forward to staffing up and expanding our hours.

Then, the worst imaginable news came. The SBA informed thousands of restaurants that, due to three lawsuits (one in Tennessee and two in Texas), thousands of women, veterans and minority business owners were not getting their promised grants. Even though these lawsuits were ruled on after my approval for the RRF, the money was not coming to Bittersweet and so many like me.

Sadly, my outreach to elected officials has been met with shrugged shoulders and a gross misconception exists that simply because we have reopened, things are back to normal. One busy weekend does not make up for 16 months of lost business. Last month, over $12 million of taxpayer money was deposited into restaurant accounts within blocks of mine. I am thrilled for them, but how can those of us left out possibly begin to compete?

I’m not seeking a handout or special treatment. I simply want what was promised to me by the SBA and Congress. It feels like I’m being punished for the pandemic, a priority application, and a lawsuit – all of which I played no part in creating.

My parents raised me to recognize and appreciate the opportunities given to entrepreneurs and women in this country--something not available in other parts of the world. Ironically, now I’m being punished for being both.

We are tired. We are battered. And it feels like no one is listening. Congress must do what’s right and replenish the RRF, so Bittersweet and nearly 200,000 other restaurant applicants can survive.

This story was originally published August 23, 2021 at 12:00 AM.