The Lost Cajun, Which Sued to Halt Minority Preference for COVID Funds, Has Closed

A restaurant in Keller didn't agree with how the Small Business Association (SBA) was distributing more than $28 billion from the Restaurant Revitalization Fund during the pandemic. So, the owners sought a temporary restraining order, ultimately terminating funding to businesses that were considered socially or economically disadvantaged.

As first reported by The New York Times, Jason and Janice Smith, co-owners of The Lost Cajun, which operates as the Blessed Cajun LLC, filed a lawsuit in May 2021 claiming they had lost $350,000 in gross revenue during the pandemic.

The SBA had been instructed by the Biden administration that for the first 21 days of the $28 billion grant program it should give priority review to businesses owned by women, veterans and those who were socially and economically disadvantaged. The Smiths felt that order would keep them from receiving funds. Their suit was backed by Stephen Miller, former senior advisor to Donald Trump, and by the America First Legal group.

A judge granted the Smiths the injunction on May 18, ultimately halting funding that had, in some cases, already been assigned to businesses.

The irony was that the Smiths received two separate Paycheck Protection Program loans — one for $67,900 and the other for $95,073 — and on both of those applications self-reported as a female-owned business.

The Smiths did indeed receive a grant for $187,753 from the SBA just days after the judge granted their injunction. In all, The Lost Cajun received $350,726.

A small business owner, Kathleen Morgan of Honeychild's Sweet Creams in Houston, told us at the time she was informed through her SBA application portal that she was going to receive a grant of $21,000. The SBA even asked her to verify her direct deposit information. After the lawsuit, the funds disappeared from her portal and she never received a grant.

The Lost Cajun in Keller posted on Facebook on July 11, "There is a season for everything, a time for every occupation under heaven: The season for The Lost Cajun Keller has come to an end."

Honeychild's is still open and was recently named an essential ice cream spot in Houston by KPRC-TV.

We reached out to the Smiths and America First Legal for comment but did not hear back.