USA Gymnastics Sues for Access to Small Business Virus Aid

USA Gymnastics has joined a chorus of companies challenging the Small Business Administration’s policy denying economic stimulus payroll loans to bankrupt companies.

USAG, which has been in Chapter 11 since December 2018 to deal with the fallout of sexual abuse lawsuits, filed a complaint Monday with the U.S. Bankruptcy Court for the Southern District of Indiana, saying cancellation of this year’s Summer Olympics has put the organization in a bind.

The SBA’s policy “impermissibly discriminates against debtors in bankruptcy” and exceeds the agency’s authority, the sport’s governing body said.

A number of bankruptcy judges have ruled that the SBA can’t ...