KS&G Investigates Denied Small Business Administration Economic Injury Disaster Emergency Advance Grants

DO YOU BELIEVE THAT YOU WERE DENIED A SMALL BUSINESS ADMINISTRATION (SBA)  ECONOMIC INJURY DISASTER EMERGENCY ADVANCE GRANT (EIDL GRANT) BECAUSE OF CRIMINAL HISTORY? 

Kohn, Swift & Graf, P.C. is investigating whether otherwise eligible organizations have been and are being improperly denied Small Business Administration (SBA) Economic Injury Disaster Emergency Advance Grants (EIDL Grants) because of truthful responses to criminal history questions on the application.

The Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), instructs the SBA to disburse Economic Injury Disaster Loan and Emergency Advance Grants (EIDL Grants) of up to $10,000 to any “eligible entity” requesting such funds in its loan application, and to accept the applicant’s written representation made under penalty of perjury that the applicant is qualified to receive a loan and, thus, an EDIL Grant.  The EDIL Grants are to be provided by the SBA whether the SBA ultimately decides to extend a loan to the applicant.

The SBA is systematically disqualifying statutorily qualified applicants from receiving EDIL Grants by using inapplicable eligibility rules.  The SBA has wrongly decided that businesses and non-profits are ineligible for EDIL Grants if any principal in such entity has ever had an encounter with the criminal justice system, even if he or she was never convicted of any offense or have had his or her record expunged

The way that the SBA is currently administering the EDIL Grant program eliminates access to the EDIL Grant funds appropriated by Congress to help small businesses and non-profits survive the Covid-19 pandemic if one of their principals has been involved with the criminal justice system. 

If you believe that your organization was denied an EDIL Grant because of responses to the SBA’s criminal history questions, please contact Neil Glazer at (215) 238-1700.  Leave a voice-message and Neil will respond promptly.