Judge grants preliminary injunction to allow Archdiocese to qualify for PPP loan

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District Court Chief Judge Frances Tydingco Gatewood has granted the Archdiocese of Agana’s motion for a preliminary injunction against the Small Business Administration which barred the Archdiocese from qualifying for a Paycheck Protection Program loan because the Archdiocese is in bankruptcy.

The SBA administers the PPP loans but the CARES Act excludes those in bankruptcy from qualifying.

The Archdiocese sought the injunction in order to proceed with its application and qualify for a PPP loan and receive federal funding to keep  Archdiocese staff employed.

In her decision granting the Archdiocese’s motion Judge Tydingco-Gatewood concluded that the Archdiocese would “suffer irreparable harm … if the injunction is not issued” and “an injunction is in the public interest.”

“The preliminary injunction cures the unauthorized exclusion of the Archbishop of Agaña from the PPP,” wrote the Judge.

“Without a doubt, the PPP funds would provide a lifeline to the financially distressed Archbishop of Agaña. While it will not resolve its financial troubles, the PPP funds will likely help facilitate a path towards a successful reorganization.”

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