Welcome

Bankrupt Vermont Hospital Wins Court Bid to Seek Stimulus Loan

May 4, 2020, 10:37 PM

The Small Business Administration can’t block a bankrupt hospital in Vermont from applying for a stimulus loan solely because of its distressed status, a federal court ruled.

Judge Colleen A. Brown of the U.S. Bankruptcy Court for the District of Vermont granted a temporary restraining order Monday on behalf of Springfield Hospital, Inc., which sued for the right to apply for a Paycheck Protection Loan.

Brown found that Springfield Hospital had met all criteria legally required for a temporary restraining order. She said the loans under the CARES “constitutes a grant of economic aid in response to the pandemic” and ...

To read the full article log in.

Learn more about a Bloomberg Law subscription.