SBA Says PPP Funds Cannot Be Loaned to DIP, but One Court Finds the Prohibition Violates 11 U.S.C. § 525(a)

On April 24, the Small Business Administration published additional interim rules which clarified that the SBA would not allow Paycheck Protection Program (PPP) loans to be used for debtor in possession (DIP) funding by stating as follows:

Filed under:
USA, Insolvency & Restructuring, Litigation, Adams and Reese LLP, Paycheck Protection Program, Title 11 of the US Code
Authors:
Christopher J Kane , Charles W. Cook III
Location:
USA
Firm:
Adams and Reese LLP