ORLANDO, Fla. — A local law firm is the latest to file a lawsuit against the Small Business Administration for the way the organization handled Economic Injury Disaster Loans.
The lawsuit, filed in federal court, lists around 60 local business owners so far. All of them applied for the $10,000 in relief, and none of them have seen a dime.
Celebration Title Group on Mills Avenue in Orlando is open, and considered an essential business, but that doesn’t mean business hasn’t taken a hit.
“We’re slowly seeing some contracts fall apart, so we’re definitely feeling the effects,” owner Amanda Douglas said.
Douglas is one of the dozens involved in the lawsuit, accusing the SBA Administrator of changing promises made to business owners on when they would receive up to $10,000 in EIDL funds during the COVID-19 crisis.
“The CARES Act specifically says you need to provide a $10,000 grant, within three days,” attorney Jim Ippoliti said.
Attorneys and brothers Jim and Jeff Ippoliti detail in the lawsuit that the SBA website originally stated all EIDL grants would be paid within three days, but then, without the discretionary authority to do so, the SBA subsequently changed that language on its website to “within days of a successful application,” and later changed it again to read “within days.”
READ: Small businesses fight to stay afloat as work dries up, SBA loans stuck in limbo
“This program is designed to provide quick access to $10,000, 72 hours,” attorney Jeff Ippoliti said. “It’s been more than three weeks, and most businesses haven’t seen a dime.”
The SBA EIDL and PPP programs both ran out of funding last week, and Congress is working to restore additional money. Attorneys state in the lawsuit that “petitioners depended on receiving the $10,000 grant within three days of submission of their application, in order for their businesses to survive.”
"It’s very frustrating, and I can imagine it’s super frustrating for non- essential businesses,” Douglas said. “$10,000 two weeks ago would’ve been a lot of money to keep them afloat.”
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