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New York Italian restaurant Del Posto has raised over $85K using Bay Area-based GoFundMe, but has struggled to get a payout.

Restaurants are desperate for the money raised by cash drives on GoFundMe, but some say that when they’ve tried to access the dough, they couldn’t get a dime.

Redwood City-based donation platform GoFundMe has been presented as a potential solution for bars, restaurants, and workers left without revenue during the coronavirus pandemic - to the point that Yelp and GoFundMe even mounted fundraisers for shuttered spots without their permission. But several restaurants that spoke with Eater New York said that when they tried to withdraw the money raised by their campaigns, the platform refused to pay out the contributions.

This isn’t just an urgent issue because the food industry needs money, now, to avoid an impossible-to-reverse freefall: As GoFundMe requires the beneficiaries of a campaign to withdraw its money within 30 days or lose it forever, delays to a restaurant’s ability to initiate a payout endanger the money they’ve been counting on.

But folks like Ariel Arce, who had fundraisers for workers at NYC spots Tokyo Record Bar and Air’s Champagne Parlor, says that GoFundMe delayed distribution of funds for weeks, while others like Melissa Rodriguez, the head chef at fine dining Italian restaurant Del Posto, say they haven’t been able to access any of their donated funds “despite repeated attempts and efforts to resolve issues.”

“It feels like you’re being held hostage by them,” Kevin Hooshangi, the managing partner of New York bar American Whiskey, tells Eater NY. “And this money is not going toward the proliferation of a business — it’s a lifeline.”

Are you a Bay Area food industry pro who’s had trouble accessing your coronavirus-related GoFundMe money? If so, please drop us a line.

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