GUAM
Guam Daily Post
June 3, 2020
By Haidee Eugenio Gilbert
The Archdiocese of Agana on Tuesday sued the U.S. Small Business Administration, claiming it was unlawfully denied access to a COVID-19 pandemic loan because of its bankruptcy status.
The archdiocese applied for a $151,769 loan under the SBA’s Paycheck Protection Program on May 8 in an effort to keep its employees on payroll during the pandemic. The archdiocese is asking the court for a preliminary and permanent injunction that prohibits SBA from denying its PPP loan, based on its bankruptcy status.
The PPP loan is part of the Coronavirus Aid, Relief and Economic Security, or CARES, Act, a massive financial assistance package for states and territories to help them deal with the pandemic.
The archdiocese said nothing in the CARES Act, SBA regulations, procedures, or SBA’s first and second interim rules, authorize SBA to exclude debtors in bankruptcy from the PPP.
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