American Small Business League v. Small Business Administration

Background

The Coronavirus Aid, Relief, and Economic Security Act created the Paycheck Protection Program, under which the Small Business Administration authorized loans to small businesses. The American Small Business League made a Freedom of Information Act request seeking data showing how funds were distributed through the program. It alleged that the SBA had not produced responsive records apart from links to summary information and information the SBA had publicly released.

The League filed this action seeking an injunction requiring the SBA to fully respond to its request. It later moved for summary judgment, asking for immediate disclosure of information about every PPP loan, including borrower names, loan amounts, and the extent to which loans had been forgiven. The SBA opposed that motion on procedural grounds and moved to stay the case pending two earlier Freedom of Information Act cases in the District Court for the District of Columbia involving the same PPP loan information.

Motion to Stay

The court applied the factors used to decide whether pausing a case would promote fairness and efficient judicial administration: possible damage from the stay, hardship or unfairness from continuing the case, and whether a stay would simplify the issues and reduce conflicting decisions.

As to possible damage, the League argued that a stay would delay information needed for public discussion of additional pandemic relief and the upcoming election. The court found that asserted harm too speculative, in part because a quick decision in this case was unlikely and the effect of disclosure on the election or future funding could not be predicted.

As to hardship, the SBA did not show a separate hardship beyond the risk of inconsistent rulings. The court therefore found that this factor did not support a stay.

The court found that the orderly-course-of-justice factor favored a stay. The two District of Columbia cases were earlier-filed, fully briefed, and involved the same requested information. The court reasoned that those cases could either result in disclosure that might make the League’s motion unnecessary or provide another court’s analysis before this court addressed the merits. The court also noted that the SBA had asserted in the District of Columbia cases that the information was protected by Freedom of Information Act Exemptions 4 and 6, which concern confidential commercial information and clearly unwarranted invasions of personal privacy.

Other Directions and Disposition

The court granted the SBA’s motion to stay. The action concerning the PPP loan information was stayed pending decisions in the two District of Columbia cases. The parties were directed to file a joint status report within 14 days after those decisions, describing their effect on this case and proposing a schedule for proceeding.

The court deferred ruling on the League’s motion for summary judgment pending decisions in the related cases. It also directed the SBA to provide a response to the remainder of the League’s FOIA request by November 20, 2020. The opinion additionally states that, under an earlier order, the SBA was required to provide a response concerning PPP loan information no later than October 30, 2020.