WHY NOT SUE THE FEDS FOR COVID RELIEF?
A Houston lawyer thinks cannabis or ancillary companies could sue the U.S. Small Business Administration for the pandemic relief funds given to other industries.
WeedWeek
“The current rules bar eligibility for businesses deriving revenue from illegal activities. But in defining illegal activities, [lawyer Shane] Pennington says, the SBA relied on its own guidance on whether ancillary businesses were eligible for relief…
Pennington thinks a court could overrule the agency’s interpretation of its own regulation…[which is now] in the books, “mocking everybody,” he said.
He compared the agency’s rules to how other federal agencies frequently offer guidance with huge financial implications—involving fuel standards, for instance, or pipeline locations. Such regulations routinely face challenges from corporations and environmental organizations.
No cannabis or ancillary businesses have signed on as plaintiffs.
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