Bankrupt Alpha Media Cites SBA Rule Change to Obtain PPP Loan

Alpha Media Holdings LLC asked a court to authorize its renewed bid to borrow $10 million in federal Covid-relief loans, arguing its recent bankruptcy plan confirmation makes the radio broadcaster eligible for the aid.

Paycheck Protection Program loans would help the company continue operations and end a budding legal battle with the Small Business Administration, according to its April 19 filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

Bankrupt companies in Chapter 11 proceedings aren’t generally allowed to borrow PPP loans, overseen by the SBA. But the SBA recently updated its guidance to consider debtor companies ...