Government often wins by arguing that the Small Business Act prohibits injunctions forcing the SBA to consider granting ‘PPP’ loans without regard to whether the applicant is a chapter 11 debtor.
In a rapid-fire appeal, the Fifth Circuit ruled that the Small Business Act bars bankruptcy courts from enjoining the SBA.
Courts still have no consensus about debtors’ right to receive PPP ‘loans’ under the Cares Act.
Discovery sanctions are dischargeable under Section 523(a)(7), even when incorporated into a bar disciplinary suspension.
Courts are divided on whether PPP litigation is ‘core’ or not.
A PPP ‘loan’ under the Cares Act isn’t a ‘grant,’ thus the government isn’t barred from discriminating against a bankrupt under Section 525(a).
June 2020
