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Following three lawsuits who overturned the RRF’s priority application program, and the almost 3,000 priority applicants who were subsequently not granted payments despite prior application approval, comes a new development in the RRF scandal: a host of grant cancellation letters have been delivered by the U.S. Small Business Administration.
These letters were delivered to applicants who had been approved for grants prior to when the lawsuit judgments came out; these applicants have been waiting for their grants ever since the RRF originally opened. The SBA has not only declined to comment on this new development, but has also outsourced its hotline to a third-party service who do not have the answers applicants need. As of now, there is much up in the air. The number of recipients of said letters, when or whether a next round of letters will be dispersed, and why the delay of these updates is being attributed to a so-called “invalid industry flag” remains unclear. What has been made clear is that applicants do not need to apply again, as the SBA will keep applications in their current status based on the date that they were submitted.
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