NACBA Calls on SBA to Submit to the EOUST the Eligibility of Debtors for PPP

NACBA Calls on SBA to Submit to the EOUST the Eligibility of Debtors for PPP

On March 29, 2021, the National Association of Consumer Bankruptcy Attorneys (NACBA) sent a letter to Administrator Isabella Casillas Guzman of the U.S. Small Business Administration (SBA) calling on the SBA to submit a written determination to the Executive Office for the United States Trustees (EOUST) regarding the eligibility of debtors to receive loans under the Payroll Protection Program (“PPP”). NACBA highlights these debtors include consumer debtors that had filed Chapter 13, family farmers that have sought protection under Chapter 12 and small businesses reorganizing under Subchapter V.

As applications for PPP loans must be submitted by May 31, 2021, NACBA President John C. Colwell explains how critically important it is that the SBA act immediately to submit a written determination to the EOUST regarding the eligibility of debtors. Colwell stresses that, “failing to do so will substantially undermine the intent of Congress to help small business owners facing enormous financial problems due to the pandemic.”

Read the full letter.

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