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Mark F. Warzecha, Esp. and Widerman Malek, PL of Melbourne, FL have filed a federal lawsuit against Small Business Administration (SBA) Administrator Jovita Carranza for the mishandling of Emergency Injury Disaster Loan (EIDL) Grant funds. The CARES act states that small businesses may request an advance of up to $10,000 from the SBA if they were affected by the outbreak. The SBA was to rely on a self certification and credit check, then “not more than $10,000” was to be released to small businesses within 3 business days of an application being received by the SBA.
The SBA, citing high demand, countered this request weeks later saying they had received so much demand for EIDL advances that the SBA reduced the grant money (which does not need to be repaid), to $1,000 per employee. This has created a lot of frustration as its not congruent with the actual text of the CARES act.
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