LV business files suit against SBA over CARES Act

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logo landA Las Vegas company filed a federal lawsuit against the Small Business Administration on Monday, claiming it has mismanaged the Coronavirus Aid, Relief, and Economic Security Act (CARES Act.)

Attorney Brian Shapiro, on behalf of his client, LIT Ventures, alleges the agency failed to comply with provisions of the CARES Act, which promised $10,000 emergency grants to small businesses as a result of economic damages from COVID-19.

The lawsuit alleges the SBA changed the terms of the program, as announced by President Donald Trump.

“The SBA’s decision to implement procedures in contravention of the CARES Act are
arbitrary, capricious, an abuse of discretion or otherwise not in accordance with the law,” Shapiro wrote on behalf of his client.

Restaurant chains such as Ruth’s Chris, which typically operate with greater capital resources, have come under fire for receiving aid under the act, which allowed companies with fewer than 500 employees per location to apply.  Funding for the program almost immediately dried up before it could fulfill requests from truly small businesses. Shake Shack announced it is returning the money afforded the company via the government relief.

Dana Gentry
Reporter | Dana Gentry is a native Las Vegan and award-winning investigative journalist. She is a graduate of Bishop Gorman High School and holds a Bachelor's degree in Communications from the University of Nevada, Las Vegas. Gentry began her career in broadcasting as an intern at Channel 8, KLAS-TV. She later became a reporter at Channel 8, working with Las Vegas TV news legends Bob Stoldal and the late Ned Day. Gentry left her reporting job in 1985 to focus on motherhood. She returned to TV news in 2001 to launch "Face to Face with Jon Ralston" and the weekly business programs In Business Las Vegas and Vegas Inc, which she co-anchored with Jeff Gillan. Dana has four adult children, a grandson, three dogs, three cats and a cockatoo named Casper.