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United States District Court for the District of New Mexico
July 15, 2021, Filed
Civ. No. 20-473 MV/GBW
[*822] PROPOSED FINDINGS AND RECOMMENDED DISPOSITION
THIS MATTER comes before the undersigned on Appellant's Notice of Appeal and Statement of Election (doc. 1) pursuant to the Court's Order of Reference (doc. 15). Having reviewed the related briefing (docs. 22, 24, 25) and submissions of supplemental authority (docs. 26, 27, 28, 29), and being fully advised in the premises, I recommend REVERSING the final judgment of the U.S. Bankruptcy Court for the District of New Mexico [**2] ("Bankruptcy Court") for the reasons discussed below.
This appeal arises from an adversary proceeding that Appellee, a tax-exempt nonprofit corporation in a Chapter 11 bankruptcy proceeding, filed against Appellant, the U.S. Small Business Administration ("SBA"), in the Bankruptcy Court. Bankruptcy Record on Appeal ("BRA") vol. 1 at 4-18. Appellee sought a declaratory judgment that the SBA's implementation of the Paycheck Protection Program ("PPP")—a temporary, short-term program under which the SBA guarantees loans with favorable terms to eligible recipients—violated the Administrative Procedure Act ("APA") and Chapter 11 of the U.S. Code. Id. at 17. Appellee also requested the Bankruptcy Court to preliminarily and permanently enjoin the SBA from denying Appellee a PPP loan for being bankrupt and to issue a writ of mandamus under 28 U.S.C. § 1361 to compel the SBA Administrator to remove language disqualifying bankruptcy debtors from PPP loan applications. Id. at 17-18. For reasons to be explained later, the Bankruptcy Court granted Appellee the requested declaratory and injunctive relief in a final judgment. Id. at 119-20. It did not reach the writ of mandamus issue.
[**3] A. STATUTORY & REGULATORY BACKGROUND
Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.
632 B.R. 816 *; 2021 U.S. Dist. LEXIS 131816 **; 2021 WL 2981062
U.S. SMALL BUSINESS ADMINISTRATION, Appellant,1 v. ROMAN CATHOLIC CHURCH OF THE ARCHDIOCESE OF SANTA FE, Appellee.
loans, bankruptcy court, eligibility, bankrupt debtor, proceedings, lender, small business, funds, first rule, statutory authority, final judgment, Consultants, borrower, courts, injunction, final order, non-core, Fourth Rule, authorization, underwriting, forgiveness, regulations, adversary proceedings, bankruptcy judge, bankruptcy case, provisions, licenses, Counts, costs, eligibility criteria