A reversal in course by a federal agency could provide several businesses here in Florida with an important lifeline when it comes to getting the additional funds they need. Going forward, many Chapter 11 bankruptcy debtors may now be eligible for Paycheck Protection Program (PPP) loans. Whether or not your business is considering applying for a PPP loan, you should seek out advice from an experienced South Florida bankruptcy lawyer before making any crucial decisions in the process of contemplating (and potentially pursuing) bankruptcy.
Until very recently, Florida bankruptcy debtors, including Chapter 11 filers, were cut off from PPP loan funds. That was because of a U.S. Small Business Administration (SBA) standard and the 11th Circuit Court of Appeals’ ruling in the bankruptcy case of a Pinellas County medical office.
The debtor, which was a “physician-owned and -operated outpatient imaging, diagnostic, and interventional radiology center” located in St. Petersburg, filed for Chapter 11 bankruptcy in 2019.