CNA Staff, Jun 12, 2020 / 13:00 pm
A federal judge on Wednesday denied attempts by the Catholic dioceses of Buffalo and Rochester to obtain emergency small business loans.
In April, the dioceses had sued the Small Business Administration (SBA) after they were blocked from emergency small business loans under the Paycheck Protection Program (PPP) because of their bankruptcy debtor status.
Congress had initially allocated $349 billion in short-term relief for small businesses and eligible non-profits in March, to help them keep employees on payroll during the pandemic.
As part of the conditions for loan applications, entities could not be undergoing the bankruptcy process. The Diocese of Rochester filed for bankruptcy in September of 2019 and the Buffalo diocese followed suit in February. Each diocese had been named in hundreds of clergy sex abuse lawsuits following the openning of a window in the statute of limitations in the state in cases of sexual abuse.