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Note to the SBA: Debtors in Bankruptcy Are Eligible for PPP Loans
As previously reported, Michelman & Robinson filed a first-of-its-kind lawsuit on May 4 against the U.S. Treasury Department, Treasury Secretary Steven Mnuchin, the Small Business Administration, and the SBA’s administrator Jovita Carranza on behalf of three tech companies. Our case—which challenges guidance from the SBA issued in consultation with Treasury as it relates to the necessity of PPP loan requests—is pending, and the defendants have until July 10 to respond. In the meantime, the SBA is facing other PPP-related litigation in U.S. Bankruptcy Courts, and a well-reasoned decision was just handed down by one of them supporting the ability of bankruptcy debtors to obtain PPP loans. The case, and sound logic of the bankruptcy judge presiding, should be of interest to bankruptcy debtors nationwide. (Read More)