WASHINGTON (Legal Newsline) - The Harlem Globetrotters refuse to take a loss on their quest for $10 million in COVID-19 funding.
Harlem Globetrotters International filed a complaint June 10 in District of Columbia federal court against the U.S. Small Business Administration over its refusal to give economic aid to the long-running basketball entertainment show.
The Globetrotters applied for funds from the Shuttered Venue Operators Grant program, which was created to give emergency financial assistant to live entertainment businesses impacted by the COVID-19 pandemic.
The SBA denied the Globetrotters' application, though, without clearly stating its reasons, the complaint says. The Globetrotters experienced a financial loss of more than 95% of its 2019 revenue during two quarters of 2020, when the pandemic struck.
"HGI demonstrated in its initial application that it satisfied the criteria for eligibility as a live venue operator or promoter," the suit says. "It also submitted certifications of eligibility required by the SBA's guidance on SVOG applications."
The application was denied in July 2021. A subsequent appeal also failed, "at least in part" because two reasons. They are: "Did not meet the principal business activity standard for the entity type under which applied" and "Did not meet one or more of the eligibility criteria specific to the entity type under which applied."