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Political Consulting Firms Say They Too Are Small Firms, Deserve CARES Loans

The trade industry group representing political consultants has filed suit against the federal government, saying that they too deserve small business loans enabled through the CARES Act and that denying them those loans represents a First Amendment violation, according to the Wall Street Journal.

Small Business Administration rules specifically bar “businesses primarily engaged in political or lobbying activities" from receiving loans, which has drawn the ire of the American Association of Political Consultants. The suit that the association filed alleges that pollsters, lobbyists and campaign operatives are also suffering during the pandemic, and that denying them access to the loans violates their right to free speech and what it claims is a constitutional right to access the loans. The suit names the Small Business Administration and its administrator, Jovita Carranza. The Journal reported that a spokeswoman for the SBA declined to comment.

Recently it was reported that hedge funds are also seeking to access these loans. Unlike political consultants, hedge funds are not specifically exempted from eligibility, although those seeking such aid have drawn swift moral condemnation from their fellows as well as institutional investors.