A three-Michelin star restaurant where California Governor Gavin Newsom was caught dining reportedly received $2.4 million in Paycheck Protection Programs (PPP) loans from the Small Business Administration (SBA).

The French Laundry was located in Napa Valley that made the news after Newsom was busted in photos dining at the posh restaurant with a maskless group for a birthday party, as reported by The Blaze.

It caused an uproar as Newsom was caught violating his own strict COVID-19 guidance.

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He then responded to the issue by saying that he should have modeled better and not joined the dinner.

The restaurant's chef and proprietor, Thomas Keller, has once again made it to the headlines due to the amount of federal financial assistance the establishment received. 

The restaurant was reportedly given a $2.2 million PPP loan by the SBA on Apr. 30 to retain a total of 163 employees. It again received a second PPP loan worth $194,656 to retain five employees on the same day.

The money that the French Laundry received was 17 times more than what the average Bay Area restaurant received, according to a Fox Business report. 

Other Small Businesses

This caused a backlash from other business owners. The former owner of San Mateo restaurant Vault 164, Dennis Berkowitz, said he is angry but what can he do about it.

Berkowitz added that he struggled to get a $318,000 loan to retain about 50 employees. However, the loan was not enough to keep his business open. He said he was forced to sell the restaurant in July.

"I've had a 40-year run in the restaurant business, so I consider myself fortunate. I really feel bad for the next generation of restaurateurs because they're screwed," Berkowitz noted in an ABC 7 News report.

ABC 7 News further reported that analysis showed that thousands of California loans granted by the SBA were given to big businesses before small mom-and-pop owners.

In California, 91 percent of larger restaurants with 300 or more employees received their loan approval in April, while only 52 percent of smaller restaurants with 100 or fewer employees got approved.

ABC 7 reached out to the French Laundry multiple times to get its side on the issue and ask how many employees were retained for each loan. However, the restaurant did not respond.

Meanwhile, Val Cantu of Californios restaurant received around $214,597 to retain about 10 to 14 people.

Cantu said they are still trying to figure out how to spend it correctly. He admitted that an accountant helped them with the application process. He noted that it was "definitely a scary process."

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Theresa Pasion agreed to what Cantu said. Pasion is the owner of Mission's La Palma. Like any other family-owned small business, she did not have in-house financial help.

She noted that anything you fill out wrong in the application, you are liable for.

French Laundry is just among the restaurants in the Bay Area with Michelin stars to receive PPP loans. 

Other restaurants granted with PPP loans were Saison, Acquerello, Benu, Atelier, and Californios Restaurant Group.