June, 17 2020, 12:00am EDT
ACLU, Civil Rights Organizations Sue the Small Business Administration for Excluding Business Owners with Criminal Records from COVID-19 Relief Loans
Today, the American Civil Liberties Union (ACLU), the Public Interest Law Center, and Washington Lawyers' Committee for Civil Rights and Urban Affairs filed a lawsuit in federal court to stop the Small Business Administration (SBA) from denying federal Paycheck Protection Program (PPP) loans to small business owners with criminal records. Congress has made hundreds of billions of dollars in PPP loans available to small businesses to keep them and their employees financially afloat in the wake of COVID-19's massive economic impact.
BALTIMORE
Today, the American Civil Liberties Union (ACLU), the Public Interest Law Center, and Washington Lawyers' Committee for Civil Rights and Urban Affairs filed a lawsuit in federal court to stop the Small Business Administration (SBA) from denying federal Paycheck Protection Program (PPP) loans to small business owners with criminal records. Congress has made hundreds of billions of dollars in PPP loans available to small businesses to keep them and their employees financially afloat in the wake of COVID-19's massive economic impact. However, the SBA's exclusionary rules shut out many tax-paying small business owners with past criminal records, a group that is disproportionately Black and Latinx.
The lawsuit was filed on behalf of the following plaintiffs: Defy Ventures, a nonprofit organization that works with formerly incarcerated people to provide them entrepreneurial training and support; John Garland, a Black majority owner of graphic design business FastsignsBethpage, Inc. and advocate for the formerly incarcerated; and Sekwan Merritt, a Black small business owner who owns and operates a small electrical contracting business, Lightning Electric. Garland was unable to apply for a PPP loan due to a pending misdemeanor charge for which he has not been convicted and that he denies. Merritt was denied a PPP loan because he is still on parole for a 2012 drug conviction. Law firms Jenner & Block and Weil, Gotshal & Manges also represent the plaintiffs.
"The SBA's discrimination against formerly incarcerated individuals hurts not just those of us who have worked hard to create our own businesses after returning home, but also impacts our families, the people who work for us, and our communities," said plaintiff Sekwan Merritt. "Through my electrical contracting business, Lightning Electric, I want to provide hope and opportunity for folks who were formerly incarcerated. However, as it stands, the SBA blocks the path to economic equality and progress for people who come from underserved communities and who are disproportionately affected by mass incarceration."
The lawsuit challenges the Small Business Administration's interim final rule and application form barring individuals with certain criminal histories -- such as those with pending charges, those serving parole, probation, or those who have been convicted of a felony within the last year -- from applying for PPP loans. The civil rights organizations argue that the rule violates the Administrative Procedure Act by adding exclusions to the PPP that were not authorized by the CARES Act and are arbitrary and capricious under the Administrative Procedures Act.
Given that PPP loan applications are due by June 30, the lawsuit seeks a preliminary injunction to immediately halt the rule requiring a criminal background screen, and an extension of the PPP application deadline for those applicants unlawfully excluded under the challenged criminal-record exclusions.
"Formerly incarcerated individuals who have paid their debt to society deserve a fair chance to succeed," said plaintiff Andrew Glazier, CEO of Defy Ventures. "The criminal justice system already disproportionately impacts people of color, and destructive policies that create unnecessary barriers to much-needed resources -- such as the PPP -- serve only to amplify the structural racism in our justice system. The SBA's role is to support the success of small businesses, not to impose rules based on uninformed and discriminatory value judgements on their worthiness to receive support. It is long past time to eliminate rules like these."
The SBA's rules have a disparate impact on people of color, who are more likely to have a criminal record due to the systemic overcriminalization of Black and Brown communities. In addition, due to widespread barriers to employment, people with past criminal records often turn to entrepreneurship as a way to support their families and contribute to their communities. The SBA's exclusion has the potential to impact both small business owners with past criminal records, a population that is already disadvantaged in the workplace, and the economies of the communities they serve.
"I am the owner of a growing small business, which not only provides a livelihood for myself and our employees, but provides necessary services to the community and other businesses," said plaintiff John Garland. "There is no reason that our business should be denied the chance to survive this crisis and continue to grow into the future or that my employees should not be able to be paid because I have pending misdemeanor charges for which I strenuously maintain my innocence."
Individuals involved in the case commented:
ReNika Moore, director of the ACLU's Racial Justice Program: "The SBA's misguided rule excluding small business owners from federal aid based on their contact with the criminal legal system ignores the job opportunities, products, and services they provide to their communities. The excluded small business owners are more likely to be Black and Latinx because of bias in our criminal legal system, and their communities are hardest hit by COVID-19. We won't stop fighting until this economic lifeline is afforded to all."
Claudia De Palma, staff attorney at the Public Interest Law Center: "Even in the best of times, the millions of Americans with arrest and conviction records face widespread bias and discrimination in the job market. By arbitrarily denying emergency aid to small businesses owned by Americans with records--businesses like Lightning Electric, which often hires returning citizens--the SBA is dragging down the recovery of entire communities and exacerbating the outsized impact the pandemic has had on communities of color, which are also disproportionately affected by the criminal legal system. An economic crisis is not the time to create additional barriers to desperately needed support, particularly to small businesses that are part of the fabric of neighborhoods across America."
Joanna Wasik, counsel at Washington Lawyers' Committee for Civil Rights and Urban Affairs: "Formerly incarcerated business owners deserve the right to apply for SBA's forgivable loans.We should celebrate the accomplishments of formerly incarcerated individuals who are contributing to their communities, not shut them out from aid at a time of acute financial crisis. The SBA's exclusion compounds the already devastating impacts that communities of color are facing from the COVID-19 pandemic Congress did not provide any exclusions when it passed the CARES Act, and the SBA has provided no good reason for them."
Kali N. Bracey, partner, Jenner & Block: "Small businesses provide an important opportunity for people of color, who are disproportionately criminalized and incarcerated, to rebuild their lives following contact with the criminal justice system. The SBA's implementation of the CARES Act unlawfully prevents small business owners who have had felony convictions from receiving funds. These restrictions undermine the entire purpose of the CARES Act and PPP loan program -- which Congress designed to get loans to those who need it most. This lawsuit seeks to make good on Congress's promise: That PPP funds reach all eligible small businesses to help their employees and to end the discrimination against small business owners of color."
Zachary D. Tripp, partner, Weil, Gotshal & Manges: "Congress created the PPP program to provide emergency relief to all small businesses and the millions of Americans who work for them. But the SBA's categorical disqualification of small businesses based on their owners' past interactions with the criminal-justice system unlawfully denies that aid to American entrepreneurs who, despite barriers and stigma associated with their criminal history, have started businesses that contribute to the economic vitality of their communities. The SBA's actions particularly hurt communities of color, which are already disproportionately harmed by the pandemic. Our lawsuit seeks to prevent the SBA from denying promised relief to many of those who need it the most."
The final complaint can be found here: https://www.aclu.org/legal-document/defy-ventures-et-al-v-united-states-small-business-administration
A video on the filing can be found here: https://www.youtube.com/watch?v=dwnqEv7__mc&feature=youtu.be
This case was filed in the United States District Court, District of Maryland.
The American Civil Liberties Union was founded in 1920 and is our nation's guardian of liberty. The ACLU works in the courts, legislatures and communities to defend and preserve the individual rights and liberties guaranteed to all people in this country by the Constitution and laws of the United States.
(212) 549-2666LATEST NEWS
Bernie Sanders Condemns Israel's Destruction of Gaza Universities
"There are no protests on the college campuses in Gaza," said the Vermont senator. "You know why? Because every one of the 12 universities in Gaza has been bombed and destroyed."
May 08, 2024
U.S. Sen. Bernie Sanders on Tuesday denounced the Israeli military's total decimation of Gaza's universities during floor remarks on protests that have broken out on American college campuses over the past several weeks.
"There are no protests on the college campuses in Gaza," said Sanders (I-Vt.), chair of the Senate Health, Education, Labor, and Pensions Committee. "You know why? Because every one of the 12 universities in Gaza has been bombed and destroyed."
Sanders' remarks came during a floor debate over a Republican resolution ostensibly aimed at condemning antisemitism on college campuses. GOP lawmakers and President Joe Biden have repeatedly smeared campus protests against Israel's assault on Gaza as antisemitic and ignored the prominent role Jewish students have played in the nationwide demonstrations.
After Sen. Tim Scott (R-S.C.) attempted to pass the GOP antisemitism resolution via unanimous consent, Sanders—who is Jewish—rose to block the measure, criticizing it as insufficient and proposing an alternative that condemns antisemitism as well as all other "forms of bigotry in this country, whether on college campuses or elsewhere, including Islamophobia, homophobia, racism, and the growing attacks against the Asian American community."
Sanders' proposed resolution also expresses support for "the right of students and all Americans to peacefully protest," whereas Scott's measure attacks recent campus protests as "hotbed[s] of blatantly antisemitic rhetoric and action."
"The fact of the matter is that 67% of Americans, according to recent polls, support the United States calling for a cease-fire, and 60% oppose sending more weapons to Israel," Sanders said. "And that's what the protesters are talking about: They are asking why it is we are complicit in the humanitarian disaster taking place in Gaza."
Watch Sanders' remarks:
LIVE: Today I offer a simple resolution:
NO to antisemitism.
NO to Islamophobia.
NO to racism and bigotry in all its forms.
YES to free speech and protest under the 1st Amendment, whether on a college campus or across our nation. https://t.co/czTwnQnz6b
— Bernie Sanders (@SenSanders) May 7, 2024
According to the United Nations, more than 80% of the Gaza Strip's schools have been damaged or reduced to ruins by Israeli forces since October, including all of the enclave's universities.
Last month, a group of U.N. experts said that "it may be reasonable to ask if there is an intentional effort to comprehensively destroy the Palestinian education system, an action known as 'scholasticide.'"
"The persistent, callous attacks on educational infrastructure in Gaza have a devastating long-term impact on the fundamental rights of people to learn and freely express themselves, depriving yet another generation of Palestinians of their future," the experts added. "Students with international scholarships are being prevented from attending university abroad."
American campus protests against Israel's assault on Gaza have offered some measure of hope to Palestinian students whose lives have been thrown into chaos by the U.S.-backed war.
Hala Sharaf, a second-year medical student who moved to Cairo to resume her studies amid Israel's assault, toldAl Jazeera that the U.S. student campus demonstrations "have made us feel so hopeful for rejecting what America and Israel are doing to us."
"The student protests in America make me feel like I'm not alone," said Sharaf. "My message to them is to keep the focus on Gaza. Don't forget about Gaza."
Keep ReadingShow Less
Rights Groups Urge Biden to Make Delayed Report on Israel's Use of US Arms Public
The report—due Wednesday under the terms of a White House directive—has been indefinitely postponed, according to congressional aides.
May 07, 2024
Before Tuesday's reporting that the Biden administration will delay a highly anticipated report on whether Israel is using U.S. military aid in compliance with international law, a coalition of advocacy groups circulated a letter urging the White House to share the document with the public once it's published.
In February, President Joe Biden issued National Security Memorandum (NSM)-20, which requires Secretary of State Antony Blinken "to obtain certain credible and reliable written assurances from foreign governments" receiving U.S. arms "that the recipient country will use any such defense articles in accordance with international humanitarian law" and then provide Congress with periodic reports "to enable meaningful oversight."
The first report is due by Wednesday. However, four congressional aides
toldPolitico Tuesday that publication would be postponed indefinitely.
"It is not clear if your administration intends to... make this report available to the public," coalition members Amnesty International USA, Defending Rights & Dissent, Freedom of the Press Foundation, National Press Photographers Association, Radio Television Digital News Association, and Reporters Without Borders said in a letter to Biden drafted ahead of Politico's reporting.
"We strongly urge you to make the report available to the public and the press to the greatest extent possible," the groups added.
Access to the document, the coalition argued, "will allow the press to more fully and accurately report on how elected leaders are making decisions about military aid to foreign countries" and "will help Americans make informed judgments about our leaders' decisions on foreign military aid."
"We strongly urge you to make the report available to the public and the press to the greatest extent possible."
The letter comes as Israel uses U.S.-supplied arms and ammunition to wage what hundreds of international legal experts and others say is a genocidal war on Gaza. These include 155-millimeter artillery shells and 2,000-pound guided "bunker-buster" bombs, which Israel says are necessary to target Hamas' underground tunnels.
Aided by artificial intelligence-based target selection systems, Israel Defense Forces commanders are ordering strikes they know will cause large numbers of civilian casualties. In a bid to assassinate a single Hamas commander, the IDF dropped at least two 2,000-pound bombs on the densely populated Jabalia refugee camp on October 31, killing more than 120 civilians.
Even the U.S. military—which since 2001 has killed hundreds of thousands of people during the open-ended so-called War on Terror—avoids using 2,000-pound bombs in densely populated areas due to the tremendous damage they cause.
One prominent U.S. military historian called Israel's Gaza onslaught "one of the most intense civilian punishment campaigns in history," comparing it to the Allied firebombing of Dresden during World War II, which also killed tens of thousands of civilians.
The letter also comes as the Biden administration reportedly believes that Israel's nascent ground invasion of Rafah does not cross the president's "red line" warning that any "major operation" in the southern city—where more than 1 million Palestinians forcibly displaced from other parts of Gaza are sheltering alongside around 280,000 local residents—would damage U.S.-Israeli relations.
The International Court of Justice found in January that Israel is "plausibly" perpetrating genocide in Gaza, where Israeli bombs, bullets, and blockades have left more than 123,000 Palestinians—most of them women and children—dead, injured, or missing since October 7, and hundreds of thousands more suffering full-blown famine.
While the Biden administration has accepted the Israeli government's claims that it is not breaking international law when using American weapons, a number of House Democrats have challenged Israel's assurance, citing "mounting credible and deeply troubling reports and allegations" of human rights crimes committed by IDF troops in Gaza, and by soldiers and settlers in the illegally occupied West Bank and East Jerusalem.
Officials at the United States Agency for International Development also concluded in a confidential April memo to Blinken that Israel is violating NSM-20 by blocking humanitarian aid from entering the besieged Gaza Strip as children there starve to death.
Furthermore, a leaked State Department memo revealed last month that officials at four of the agency's bureaus concluded that Israel's assurances of legal arms use are "neither credible nor reliable."
In addition to NSM-20, federal legislation including the Arms Control Export Act and Leahy Laws also proscribe U.S. arms transfers to human rights violators—although there are many examples of these statutes being ignored for the benefit of key allies including Israel, Saudi Arabia, Egypt, and other nations.
"The public has a profound interest in understanding how the U.S. ensures that its military aid doesn't go to human rights abusers," Caitlin Vogus, deputy advocacy director at Freedom of the Press Foundation, said in a statement Tuesday.
"If the Biden administration can stand behind its decisions about defense assistance, it should have no reason to withhold the report that members of Congress will see from the press and the public," Vogus added.
While Biden has criticized Israel's "indiscriminate bombing" of Gaza and is reportedly holding up two shipments of precision-guided bombs to send a message to Israeli leaders, the president continues to affirm his steadfast support for Israel and has recently approved the transfer of more warplanes, 2,000-pound bombs, and other arms to its key Middle Eastern ally. The administration is also pushing Congress to approve the sale of $18 billion worth of F-15 fighter jets to Israel.
Earlier this year, a group of mostly Democratic members of Congress asked Blinken to explain what they called "highly unusual" moves by the Biden administration to bypass lawmakers in order to fast-track emergency military aid to Israel. Biden—who recently signed off on $14.3 billion in new armed aid to Israel atop the $4 billion it already gets from Washington each year—has also come under fire for approving more than 100 weapons sales to Israel since October.
Human rights defenders slammed Biden's reported decision to postpone publication of the report due on Wednesday.
"It's obvious why Biden is burying the NSM-20 report on Israel: He won't hold Israel accountable," Georgetown University adjunct professor Josh Reubner asserted on social media. "There's no way to conclude that Israel hasn't violated assurances it won't use U.S. weapons to break international law or block aid. Of course it's doing both."
Palestinian American author and political analyst Yousef Munayyer asked: "Hey, Joe Biden, what are you hidin'?"
Keep ReadingShow Less
'Overdue But Welcome': Biden Reportedly Holds Back Bombs for Israel
"The White House must leave no stone unturned in its effort to stop the Israeli government's offensive on Rafah—the hundreds of thousands displaced there do not have more time," said the head of Win Without War.
May 07, 2024
Anti-war voices on Tuesday welcomed Politico's reporting that U.S. President Joe Biden's administration is delaying "shipments of two types of Boeing-made precision bombs to send a political message to Israel," which on Monday launched a long-awaited invasion of Rafah in the southern Gaza Strip.
"The U.S. has yet to sign off on a pending sale of Boeing's Joint Direct Attack Munitions—both the munitions and kits that convert them to smart weapons—and Small Diameter Bombs," according to Politico, which cited unnamed congressional and industry sources. "While the Biden administration has not formally denied the potential sale, it is essentially taking action through inaction—holding off on approvals and other aspects of the weapons transfer process."
The piece followed Axiosreporting Sunday that Israeli officials said the administration "last week put a hold on a shipment of U.S.-made ammunition" and The Wall Street Journal's Monday revelation that it "has held up delivery of Joint Direct Attack Munitions."
"If President Biden is taking the overdue but necessary step... he cannot leave his intentions open to miscommunication or spin."
The White House has neither confirmed nor denied Politico's report, which came as Biden again conflated campus protests against Israel's war on Gaza with antisemitism. Since Israeli Prime Minister Benjamin Netanyahu launched the U.S.-backed offensive in October, Biden has faced mounting pressure to cut off arms to the country and use his influence to end the bloodshed.
"Reports that the Biden administration is delaying the sale of at least two types of bombs to the Israeli government, in reaction to its disastrous conduct of the war in Gaza, are highly welcome. That conduct is again on international display in Rafah this week, where the Israeli military has begun an invasion that, as we at Win Without War have previously warned, could lead to further horrific war crimes," the group's executive director, Sara Haghdoosti, said in a statement Tuesday.
"Now that this news has leaked, senior administration officials must publicly confirm this policy shift," she said. "If President Biden is taking the overdue but necessary step to condition weapons sales in line with U.S. law and policy and to force changes in Israeli government strategy, he cannot leave his intentions open to miscommunication or spin from those, including Prime Minister Netanyahu, who are continuing this conflict for their own political benefit. The White House must leave no stone unturned in its effort to stop the Israeli government's offensive on Rafah—the hundreds of thousands displaced there do not have more time."
Over a million Palestinians from across Gaza have crowded into Rafah since October, as Israeli forces have killed at least 34,789 people, wounded another 78,204, and destroyed civilian infrastructure in the strip, which has been under Hamas control for nearly two decades. The International Court of Justice has said Israel is "plausibly" committing genocide in the besieged enclave.
While multiple congressional Republicans condemned the Biden administration's supposed move to delay the delivery of the bombs to Israel, critics of the Israeli assault joined Haghdoosti in welcoming the development—which comes on the heels of Congress and the president approving billions more in military aid for Israel.
"Glad to see it. I wish they would've started sending this message thousands of lives ago, as so many urged," Matt Duss, executive vice president at the Center for International Policy, said on social media.
Brian Finucane, senior adviser to the Crisis Group's U.S. program, agreed the move is "good if true" and "an easy step the Biden administration should have taken months ago."
Refugees International president Jeremy Konyndyk, called it an "overdue but welcome development" that "hopefully... signals a pivot to beginning to impose more overt conditionality on U.S. arms transfers."
Politico separately reported Tuesday that according to congressional sources, "the Biden administration's report on whether Israel has violated U.S. and international humanitarian law during the war in Gaza has been delayed indefinitely."
The Israeli War Cabinet—made up of Netanyahu, Defense Minister Yoav Gallant, and Benny Gantz, former chief of the general staff for the Israel Defense Forces—opted to attack Rafah on Monday despite Hamas agreeing to a cease-fire and hostage release deal. Biden previously said that Israel invading the crowded city was a "red line" and is now facing calls to stand by that position.
"The Israeli government has once again proven that it will respect no red lines and that it will go to any lengths to slaughter Palestinians and push them off their land," said Council on American-Islamic Relations national executive director Nihad Awad.
"The Biden administration can no longer enable these genocidal war crimes or Benjamin Netanyahu's brazen flouting of the United States," Awad added. "We urge the Biden administration to condemn the Israeli government's latest crimes, suspend military funding, and use American leverage to secure an immediate end to the genocide."
Keep ReadingShow Less
Most Popular