A nursing home company is suing the U.S. Small Business Administration, Treasury Department and others over a new cap on COVID-19 relief loans, law.com reported May 16.
Accordius Health at Charlotte (N.C.) alleges the Small Business Administration is overstepping its authority by limiting COVID-19 relief loans under the Paycheck Protection Program to $20 million per corporate group.
Accordius Health owns 47 affiliate companies that were deemed ineligible for PPP loans in November because the company as a whole had exceeded the borrowing cap.
Accordius Health appealed the decision claiming the limit was "improper because it is not found in the CARES act or in the Economic Aid Act," according to court documents. "Congress never adopted a limitation in the form of a maximum cap that a so-called 'corporate group' might borrow or seek forgiveness of, and did not even mention corporate groups as a category."