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Jonathan Hugg Quoted by The Business Journals about the SBA’s Targeted EIDL Advance Grant Program

On June 16, 2021 by Schnader in News

Jonathan W. Hugg was quoted by The Business Journals in “SBA’s restaurant fund lost in court. The Targeted EIDL Advance grant program could be next.”

As published on June 16, 2021:

“The Small Business Administration recently suffered a court defeat over its ability to prioritize minority- and women-owned businesses in its $28.6 billion Restaurant Revitalization Fund. Some experts say the court decision, which has left many restaurant owners scrambling, could spill into its other Covid-19 relief initiatives — including its popular Targeted EIDL Advance grant program.

. . .

But Jonathan Hugg, co-chair of the financial services litigation group at Schnader Harrison Segal & Lewis LLP, said it would be more difficult to challenge the Targeted EIDL Advance program because it does not include race or gender as a prerequisite for applying. It only considers geography.

‘A challenger could, conceivably, argue that this geographic focus is a proxy for race, or even gender. However, it would be considerably more difficult to prove. Unlike race or gender, income is not a constitutionally protected class,’ Hugg said in an email.

He also said a potential challenger would need to establish standing, which would mean proving damage from not being eligible because of race or gender, which is harder when the limitation involves geographic requirements.”

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