Venues who are were denied federal funding under the Shuttered Venue Operators Grant program are taking their cases to court.
are now facing multiple lawsuits over the program, which was signed into law last December to help independent live entertainment businesses that have been shutdown due to the pandemic. Since finally opening the application portal for the grants on April 26, the SBA has distributed $9.5 billion to more than 12,000 companies -- but also denied more than 4,500 applications.On Thursday, law firm Akin Gump Strauss Hauer & Feld filed two lawsuits in the U.S.
Both lawsuits are requesting that the SBA set aside the funds the businesses believe they are eligible for, reassess their applications and award the requested funds for both the initial and the second round of supplemental grant amounts. Lawyers from Akin Gump Strauss Hauer & Feld declined to commentThe SBA’s troubles don’t stop there -- more lawsuits may be coming. Maher Law Firm in Florida has created a website for declined grant applicants to file suit against the SBA as well.
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