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And Exonomic Security Act; Small Business Administration; Paycheck Protection Program; Debtors; Bankruptcy
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Punishing Debtors In Bankruptcy During Covid-19, David Y. Kamins
Punishing Debtors In Bankruptcy During Covid-19, David Y. Kamins
Brooklyn Journal of Corporate, Financial & Commercial Law
The 2019 Coronavirus Pandemic (COVID-19) led to widespread government-mandated lockdowns, causing numerous businesses to close their doors permanently. To assist financially distressed businesses and individuals during the pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The Small Business Administration (SBA)—the agency tasked with implementing the CARES Act—distributed funds to individuals and businesses through the Paycheck Protection Program (PPP). Part of the SBA’s eligibility requirements to receive funding through the PPP included an exclusion provision that barred debtors presently involved in any bankruptcy proceeding from receiving any PPP funding. Many debtors in bankruptcy filed suits in …