The U.S. Small Business Administration (SBA) faces 60 lawsuits over its Covid-19 relief program, Shuttered Venue Operators Grant, for promoters, movie theatres, talent agencies, and other cultural centers that could prove they lost 90% of revenues during the pandemic. Filed lawsuits came from business owners who said their requests were denied, albeit meeting the eligibility requirements.

Michael Savas, CEO of Superfan Live, said: “I continue to be shocked at the SBA’s inability to properly review a case file and make an expeditious decision.” Savas’ business, which manages VIP experiences for music acts, “spent over nine months waiting for a response from the SBA, only to be wrongly denied with every appeal.”

SBA’s director, Diedra Henry-Spires, responded to requests to clarify why so many businesses had been denied saying, “We continue to be open and responsive, inviting over 5,000 applicants to appeal SVOG decline decisions and over 2,000 grant recipients to have their awards reconsidered while offering additional support and resources to current applicants and our nearly 13,000 SVOG grant recipients.”

“SBA is trying to do the right thing.” According to Savas, the main issue is that the SVOG program has proven to be “grossly ineffective.”

– Excerpt from an article for Far Out Magazine UK by Sam Kemp. Read the full article here.

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