A renowned California restaurant, made famous recently when Gov. Gavin Newsom was spotted dining there in violation of his own pandemic restrictions, received millions in Paycheck Protection Program funding while other restaurants struggled to gain access to the funds.
According to a review of the latest data from the Small Business Administration, the luxury restaurant favored by the governor received a loan of $2.24 million and another loan of $194,657, both in April. The loans were used to retain 168 employees at the business.
“I’m angry, but what can I do about it,” said Dennis Berkowitz, whose restaurant Vault 164 struggled to get $318,000 in loans.
Berkowitz tried to use the loan to pay his 50 employees and keep his business open, but the funds he received weren’t enough, and he was forced to sell his business in July.
The French Laundry received 17 times more money than the average Bay Area restaurant, according to ABC7 News, a fact that caused angst among other area business owners.
“I’ve had a 40-year run in the restaurant business, so I consider myself fortunate,” Berkowitz said. “I really feel bad for the next generation of restaurateurs because they’re screwed.”
The three-Michelin-star restaurant was at the center of controversy last month when Newsom was photographed dining there with members of other households while not wearing a mask, violating his own coronavirus protocols.
A day later, San Francisco Mayor London Breed was also spotted dining at the restaurant, causing her to issue an apology while saying that she had not actually broken any laws.
Congress created the $670 billion fund in March as part of its coronavirus relief package in an effort to help businesses stay afloat and keep employees on the payroll.
Overall, $525 billion was distributed to businesses in forgivable loans, which the Small Business Administration says saved about 50 million jobs. The fund was closed in July with $38 billion remaining.
The French Laundry did not immediately respond to a Washington Examiner request for comment.
