Small businesses’ deadline for applying for the government’s coronavirus relief loans is here, but the fight over bankrupt companies’ eligibility status could drag on.
Companies have until midnight June 30 to apply for the loans made available by the Paycheck Protection Program, administered by the Small Business Administration to help businesses manage payrolls amid the economic turmoil caused by Covid-19.
The SBA blocks bankrupt companies from applying for the loans, a rule that has triggered lawsuits. Courts are conflicted on whether the SBA rule is legal.
That’s left some companies navigating the waters between the PPP and reorganizing their businesses ...
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