Defenders Stops Environmental Groups' Smart Growth Proposal
December 13, 2002
Washington, [D.C.] - Today a U.S. District Court Judge held that
the federal
government must justify the environmental burdens it is seeking to
impose on
small business loan applicants as part of a settlement proposed by
environmentalists.
The settlement, to which the U.S. Small Business Administration has
agreed,
would bring to an end a lawsuit filed by two
environmental groups who claim the SBA's small business lending program
causes "urban sprawl. "
Defenders of Property Rights intervened in this
case on behalf of the National Black Chamber of Commerce and the Small
Business Survival Committee challenging the proposed settlement agreement
on
grounds that it would create such a tremendous burden upon those seeking
loans, the entire small business-lending program would essentially
be shut
down.
"Today is a big win for small business owners seeking their
piece of the
American Dream," said Nancie G. Marzulla, President of the Washington,
D.C.
- based legal foundation Defenders of Property Rights. "We are
thrilled the
judge thwarted the government's attempt to create these extraordinary
burdens, and is forcing them to justify a legal cause for their desire
to do
so," said Nancie Marzulla.
In their lawsuit, Forest Conservation Council and Friends of the
Earth claim
that a small business loan of $300,000 should be considered a "major
governmental action," thereby requiring the small business owner
to comply
with the National Environmental Protection Act-an environmental statute
that
only applies to the federal government. By the terms of the proposed
settlement, a small business loan applicant would be held responsible
for
the same expensive and lengthy procedures as those required to build
federal
highways.
"This lawsuit is at the core of one's freedom of choice about
where to live
and conduct one's business activities, rights secured in part by the
Fifth
Amendment's protection of private property rights," said Nancie
G. Marzulla.
"Defenders stands on guard for those business owners in our society
who are
trying to create a better life for themselves and all Americans."
Defenders of Property Rights
1350 Connecticut Avenue, NW
Suite 410
Washington, D.C. 20036
202-822-6770
Fax: 202-822-6774
Toll-free: 866-630-9787
www.yourpropertyrights.org