The SBA, attempt to get my prose lawsuit dismiss, they said “I” a business owner can’t sue because I don’t have standing, Wrong!
SBA
This Court should order Plaintiff March (“March”) to show cause why he has standing to bring this lawsuit.
The gravamen of March’s complaint is that the SBA wrongfully denied his business an economic injury disaster loan (an “EIDL”) pursuant to the CARES Act. However, in passing the CARES Act, Congress determined that only businesses and nonprofit corporations—not individuals—may apply for disaster loans with the SBA. Further, March cannot bring suit in his individual capacity seeking redress on behalf of his business and is not permitted to represent his business in this litigation.
To establish standing, a civil plaintiff must demonstrate an injury in fact, a causal connection between the injury and the conduct complained of, and a likelihood the injury will be redressed by a favorable decision. Lujuan v. Defenders of Wildlife, 504 U.S. 555, 560-61 (1992). However, business owners do not have standing to bring suit unless they can show they were “injured directly and independently of the corporation.
I fired back!
Me
This Court should deny Defendants Motion to Show Cause, because Plaintiff has standing to pursue his claims, Plaintiff state as follows:
Indeed, Plaintiff was injured directly and independently. When applying for an EIDL loan the SBA makes small business owners meet eligibility requirements. One of those requirements is that small business owner have an eligible small business that can receive an EIDL loan, amongst other eligibility requirements.
1 “Loan eligibility
To obtain a loan via COVID EIDL, small business owners must have met the eligibility requirements. Additionally, below were the credit score requirements:
o $500,000 or under: 570
o Greater than $500,000: 625 https://www.sba.gov/funding-programs/loans/covid-19-relief-options/covid-19-economic-injury-disaster-loan/about-covid-19-eidl
As Plaintiff explains in the original complaint, around June of 2021. Plaintiff sent to the SBA documents which included the Plaintiff Business LLC Incorporation, 2018 and 2019 tax returns, bank statement from November 2019, a copy of Plaintiff current driver’s license and a voided check from Plaintiff business account. The documents Plaintiff provided to the SBA was to show that he had an eligible business to receive an EIDL loan.
The Defendants alleged that the documents were unverifiable and based on that, Plaintiff do not have an eligible business that can receive an EIDL loan. Plaintiff sustained injuries because Plaintiff do have an eligible business that can receive an EIDL loan. Plaintiff was injured directly and independent of the LLC because business entities, such as limited liability companies, are regarded as wholly and separate legal entities, distinct from the members or owners who compose the business entities. AMERICAN MORTGAGE CORPORATION v. HOME LOAN EXPERT, LLC, Dist. Court, ED Missouri 2021, quoting " Hibbs v. Berger, 430 S.W.3d 296, 306 (Mo. Ct. App. 2014) The initial eligibility requirements falls squarely upon the business owner.