Alpha Media Holdings LLC is challenging the Small Business Administration’s policy of blocking bankrupt companies from seeking Paycheck Protection Program loans.
The bankrupt radio broadcasting company sued SBA administrator Isabella Casillas Guzman Tuesday in the U.S. Bankruptcy Court for the Eastern District of Virginia after its $10 million loan application was denied by U.S. Bank.
Following the agency’s guidelines, the bank, a unit of U.S. Bancorp, cited in its denial Alpha Media’s ongoing Chapter 11 case.
Several bankrupt companies have sued the SBA administrator with similar claims over the past year, with mixed results. The U.S. Court of Appeals for...