U.S. Federal Credit Union v. Gateway Radiology Consultants, P.A.

**PPP Loan Denied to Company in Bankruptcy** This case involved Gateway Radiology Consultants, a medical practice that filed for bankruptcy and then applied for a Paycheck Protection Program (PPP) loan during the COVID-19 pandemic. The Small Business Administration (SBA) had created a rule that companies in bankruptcy proceedings could not receive PPP loans, which were designed to help businesses keep paying their employees during the pandemic. Gateway challenged this rule in court, arguing it was unfair and violated the law. The Eleventh Circuit Court of Appeals sided with the SBA, ruling that the agency's decision to exclude bankruptcy debtors from PPP loans was reasonable and legally sound. The court found that the SBA properly interpreted the law when it decided that companies already in bankruptcy should not receive these emergency loans. **What This Means for Workers:** This ruling clarifies that companies going through bankruptcy cannot access PPP funds to maintain payroll. For workers, this means that if your employer files for bankruptcy, they likely cannot use PPP loans to keep paying wages or prevent layoffs. While this protects taxpayer funds from potentially risky investments, it may limit options for maintaining employment at struggling companies during economic crises.