Dozens of lawsuits claim that a COVID-19 relief program unfairly excluded certain venues for no good reason – all while funding their direct rivals.
According to the aggrieved venues, SBA has refused their requests without good reason or a proper explanation, putting particular companies at a huge disadvantage versus rivals who somehow got money. Attorneys involved in the cases claim that rates of refusal under SVOG “significantly exceed typical government grant programs.”
Some of the lawsuits could be moving toward a more peaceful conclusion. Last week, the SBA said it would reconsider refusing $497,000 in aid to Superfan Live Inc., which offers VIP experiences at concerts from artists like Bon Jovi, Genesis, and Journey. The agency asked a federal judge for extra time, so that it could “thoroughly examine the allegations in the complaint prior to issuing a new decision.
Such quick reversals have already resolved many of the cases. One case, filed last month by a music venue in Macon, Georgia seeking $865,000 in aid, was voluntarily dropped just days after it was filed. But at least 33 lawsuits were still pending in federal court as of last week, according to a court filing by the SBA.
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