Susanville tribal businesses sue SBA, alleging suspensions cost nearly $130M in contracts

October 23, 2026 - 23:15

Businesses owned by the Susanville Indian Rancheria filed a lawsuit against the Small Business Administration on Oct. 22, claiming the agency engaged in a brazen abuse of government power that cost them nearly $130 million in federal contracts and cut off revenue supporting the Northern California tribe.

The tribe's ATI Government Solutions LLC federal contracting business, along with six other entities, brought the suit. The complaint centers on what the plaintiffs describe as improper suspensions that halted active work and stripped the businesses of expected earnings. According to the filing, those suspensions disrupted operations that fund tribal government services and community programs.

The lawsuit argues the SBA acted without adequate justification and failed to follow required procedures when it moved against the companies. The tribe says the lost contracts represent a significant share of the revenue that supports housing, health care and education initiatives for its members.

Attorneys for the plaintiffs are seeking damages and a court order reversing the suspensions. The SBA has not publicly responded to the allegations. The case adds to a growing set of disputes between tribal contractors and federal agencies over how small business programs apply to Native-owned firms.