In record time, the Fifth Circuit granted a direct appeal and reversed the bankruptcy court on June 22, ruling that the Small Business Act bars the bankruptcy court from entering an injunction that requires the Small Business Administration to grant a so-called PPP loan to a company in bankruptcy, according to today's RDW column by ABI Editor-at-Large Bill Rochelle. On April 25, a bankruptcy court in Houston preliminarily enjoined the SBA from barring the chapter 11 debtor from receiving a loan under the Paycheck Protection Program, or PPP. Enacted on March 27 as part of the Coronavirus Aid, Relief and Economic Security Act, the PPP program allows the SBA to make loans that will be forgiven if at least 60% is spent for payroll. The SBA appealed. The district court stayed the preliminary injunction pending appeal and certified the case for direct appeal. The Fifth Circuit accepted the appeal and accelerated briefing. The last brief in the circuit was filed on June 19. The appeals court issued its three-page opinion three days later.
