Potential stimulus bill could allow companies in bankruptcy to pursue PPP loans - South Florida Business Journal
Daniel Gold, counsel in the firm's Bankruptcy & Creditors' Rights practice, is quoted in the South Florida Business Journal article "Potential stimulus bill could allow companies in bankruptcy to pursue PPP loans"
What remains unclear, according to bankruptcy attorney Dan Gold, is what the new process would look like should Congress give the green light to this change. National bankruptcy rules and procedures are normally formed by the Judicial Conference, a national policymaking body for federal courts, in partnership with local rules committees — a process that often takes months, said Gold, a counsel at Buchanan Ingersoll & Rooney PC. Additionally, there's oversight by the United States Trustee, an arm of the Justice Department, though Gold said that could add a layer of scrutiny to any potential PPP abuse.
“I think what you will see is a lot of emergency motions being filed so companies can avail themselves of the program, and I think that will create a tacit procedure,” Gold said.
But given the immediate need and immense demand, that means local bankruptcy courts might end up creating rules on the fly as businesses quickly seek out the PPP's financial help, Gold added.
“A lot of times when you're in trouble, it’s difficult to find financing on favorable terms,” Gold said. "Having these PPP loans available are much more attractive options for companies in trouble."