As discussed in an earlier Legal Update,1 substantial uncertainty exists over whether companies in bankruptcy are eligible for loans under the Paycheck Protection Program, or PPP, which was established by the CARES Act to support small businesses by offering SBA-guaranteed loans on advantageous terms. Several recent bankruptcy court decisions underscore this uncertainty.
USA, Insolvency & Restructuring, Litigation, Mayer Brown, Coronavirus, Paycheck Protection Program, CARES Act 2020 (USA)