No Halo News · Sourced development
Federal court upholds SBA denial of Folsom Street's application for more than $500,000 in pandemic aid
The U.S. District Court for the District of Columbia granted summary judgment to the Small Business Administration and rejected Folsom Street's challenge to the denial of a Shuttered Venue Operators Grant exceeding $500,000. The court held that the agency lawfully applied a statutory restriction covering live performances or revenue of a prurient sexual nature.
Status matters. This page records a sourced development, not a completed No Halo investigation. An allegation is not a finding. Dismissals, settlements, judgments, corrections and final outcomes remain distinct.
Donor relevance
Why this matters
The ruling forecloses the nonprofit's district-court effort to obtain more than $500,000 in pandemic assistance, a material amount for an event-based organization that reported losing most of its revenue when in-person gatherings stopped.
Attribution
Who reported or established this
U.S. District Judge Jia M. Cobb issued the decision granting the SBA's cross-motion for summary judgment and denying Folsom Street's motion.
Evidence limits
What remains unverified
No Halo has not established whether Folsom Street will appeal, whether another source could replace the denied funding or the ruling's current effect on programming and liquidity.
Right of reply
Organization response
In the litigation, Folsom Street argued that it met the grant requirements and that the SBA's denial was arbitrary, contrary to law and unsupported by substantial evidence. The court rejected those arguments.
Classification
How No Halo records this event
Event type: Judgment. Current state: Resolved. No Halo preserves the current procedural state rather than treating every mention as a finding.
Published September 26, 2026 · Last verified September 29, 2026. See an error or a later outcome? Submit a correction or right of reply.