Opinion of Interest - Springfield Hospital, Inc. v. Guzman: Second Circuit Upholds Federal Government’s Ability to Deny PPP Loans to Bankrupt Companies

Recently, the Second Circuit became the first federal circuit court to rule that the federal government could deny a Paycheck Protection Program (“PPP”) loan to a debtor in bankruptcy solely because of an applicant’s bankruptcy status.[1] Prior to the Second Circuit’s decision in Springfield Hospital, Inc. v.

Filed under:
USA, Banking, Insolvency & Restructuring, Litigation, Mayer Brown, Coronavirus, Paycheck Protection Program, Small Business Administration (USA), CARES Act 2020 (USA)
Authors:
Ambreen J. Ahmad , Aaron Gavant , Sean T. Scott
Location:
USA
Firm:
Mayer Brown