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By a two to one vote, in an April 29 opinion, the United States Court of Appeals for the Fourth Circuit reversed a decision of the United States Bankruptcy Court for the Eastern District of Virginia that a 2017 increase in U.S. Trustee’s fees violated the Uniformity Clause and the Bankruptcy Clause of the U.S. Constitution. In a dissenting opinion, Judge A. Marvin Quattlebaum, strongly stated his belief that the increase violated the Bankruptcy Clause, but agreed that the Uniformity Clause was not violated. All three judges on the Fourth Circuit panel agreed with the Bankruptcy Court that the increase applied to Chapter 11 cases that were already pending when the increase took effect, not only to cases filed after the increase went into effect.
Federal government now allows PPP loans to borrowers in bankruptcy
Monday, April 19, 2021
Route Fifty reports.
In late March, ProPublica reported on a Small Business Administration rule that disqualified individuals or businesses currently in bankruptcy from getting relief through the Paycheck Protection Program, an $813 billion pot of funds distributed to small businesses in the form of loans that are forgiven if the money is mostly spent on payroll. The agency had battled in court against several bankrupt companies attempting to apply for PPP loans, and did not change course even after Congress explicitly passed legislation in December allowing it to do so.