As the country entered a period of deep economic decline, John Garland, owner of a small graphic design business, tried to apply for federal aid to pay his employees. He was unable to apply due to a pending misdemeanor charge that he denies, for which he has not been convicted. Mr. Garland is one of thousands of small business owners who found themselves blocked from receiving federal aid because they have an arrest or conviction history. 

After months of advocacy pushing the Small Business Administration (SBA) to change its rules, we went to court. On June 16, 2020, we filed a lawsuit challenging the SBA's broad restrictions on COVID-19 aid for small businesses owned by people with criminal histories, along with ACLU and Washington Lawyers' Committee, representing small business owners Sekwan Merritt and John Garland and nonprofit Defy Ventures. Pro bono counsel was provided by Jenner & Block and Weil, Gotshal & Manges. Read more about the case in coverage from Route Fifty and the Wall Street Journal. 

On June 24, responding to our lawsuit, the SBA changed its rules, greatly expanding eligibility for the Paycheck Protection Program (PPP). On June 29, the U.S. District Court for the District of Maryland ruled that the SBA's previous restrictions were arbitrary, capricious and unlawful. The Court granted an application extension to our newly eligible clients, who never should have been stopped from applying in the first place.

"Thousands of businesses owned by people with criminal histories were illegally blocked from receiving aid through the PPP program, and Black and Latinx communities faced the deepest impact of this restriction," said staff attorney Claudia De Palma. "The SBA must not repeat this injustice in any future aid programs, and we hope that the clear message sent by today's ruling will ensure that they won't."

Yesterday, the United States Senate passed a bill extending the PPP program, which expired yesterday, through August 8. This extension, if signed into law, would give many business owners who were unlawfully excluded from the program for the majority of its duration a meaningful opportunity to apply for aid.

In the coming school year, public schools across Pennsylvania will face the challenge of ensuring that students and staff are safe, while supporting students who fell behind when schools shifted to remote instruction. 

At the same time, Pennsylvania school districts are projected to lose up to $1 billion in local revenue due to the economic downturn. Instead of having additional resources to meet their new challenges, some districts have announced layoffs of teachers and support staff in response to these shortfalls.  To avoid further painful cuts that will affect a generation of students, additional federal aid for public education is vitally important. 

Use this tool from our friends at Education Voters of Pennsylvania to send a letter to U.S. Senators Bob Casey and Pat Toomey, urging them to make aid for public schools a central part of any future COVID-19 stimulus package. Schools across the country are facing a similar crisis. Read our joint letter with members of the PA Schools Work coalition, sent to the Senators this morning, urging them to support at least $175 billion in flexible funding for nationwide K-12 education in future responses to COVID-19.