Huang v. Small Business Administration

Background

Jingli Huang, proceeding without a lawyer, sued the Small Business Administration (SBA) over the denial of his business’s application for an Economic Injury Disaster Loan under the Coronavirus Aid, Relief, and Economic Security Act. The court had previously screened and dismissed his original complaint in part, with permission to amend. It also denied two motions seeking temporary restraining orders.

The court then screened Huang’s First Amended Complaint under the statute requiring review of complaints filed by people allowed to proceed without paying filing fees. The court may dismiss such a complaint if it is frivolous, malicious, fails to state a claim, or seeks money from an immune defendant.

Standing analysis

The court focused on whether Huang had standing, meaning a legally sufficient personal injury that gives him the right to sue. The court had previously instructed Huang to name his business as a plaintiff or plead facts explaining why he could proceed in his own name. Huang did not name the business and did not provide facts explaining why he could sue individually.

The court stated that the relevant law authorizes Economic Injury Disaster Loans for small-business concerns, private nonprofit organizations, and small agricultural cooperatives—not individual business owners. It also relied on a sample SBA loan application that identified the business as the applicant and separately asked for information about the owner. Based on those materials, the court concluded that the business—not Huang personally—suffered the injury from the loan denial. Huang therefore had not alleged enough to show that he was injured directly and independently of the business.

Because no named plaintiff had standing, the court held that it lacked jurisdiction over the case. It therefore did not decide whether the underlying claims were adequately pleaded if a plaintiff with standing existed.

Disposition

The court dismissed Huang’s First Amended Complaint. It granted limited leave to amend on the standing issue, giving Huang one more opportunity to name the business as a plaintiff and have counsel represent it, or to allege facts showing that he personally has standing.

The court stated that an incorporated business cannot appear in federal court without licensed counsel. Huang had to file another amended complaint by September 16, 2022. If he did not, the case would be closed without further notice.