Elizabeth M. Byrnes, Inc. v. Fountainhead Commercial Capital, LLC

I. Background

24 Beginning in March 2020, public health measures necessitated 25 by the outbreak of the coronavirus pandemic had “devastating” 26 effects on small businesses. Second Amended Complaint (“SAC”) ¶ 27 12. In response, the federal government enacted the Coronavirus 28 Aid, Relief, And Economic Security (“CARES”) Act, Pub.L. 116–136, H.R. 748. SAC ¶ 13. The CARES Act, among other things, established the Paycheck Protection Program (“PPP”), a $349 billion loan program through which small businesses could obtain forgivable loans backed by the Small Business Administration, but administered by private lenders. SAC ¶ 14. On March 27, the day the CARES Act was signed into law, Fountainhead advertised that it would “soon be tackling the loan inquiries lined up in our queue, providing business owners with capital they need within days.” SAC ¶ 17. The next day, Plaintiff submitted a PPP loan application to Fountainhead for a loan of less than $25,000. SAC ¶ 28. That same day, Fountainhead responded with an e-mail stating that Plaintiff was “in the queue,” and that “[h]elp is on the way,” and asking her to gather certain…