This week, Billion Law achieved a significant victory representing USA Rugby in a high-stakes court battle involving the use of Paycheck Protection Program (PPP) funds during bankruptcy. The U.S. Federal Government, through the Small Business Administration (SBA), argued that USA Rugby, in Chapter 11 bankruptcy, should not be allowed to use $375,000 in PPP loans that had already been disbursed. The SBA claimed that Justice Brendan L. Shannon lacked jurisdiction over the use of these funds and that businesses in bankruptcy were categorically excluded from the program.

However, Billion Law successfully countered these arguments, emphasizing the key fact that the SBA had approved and paid the loan despite USA Rugby (officially, the United States Rugby Football Union Ltd.) having already filed for bankruptcy. This approval raised questions about the SBA's ability to retroactively deny access to funds already granted.

At the heart of the case was whether the SBA’s blanket denial of PPP loans to bankrupt businesses conflicted with the bankruptcy code, which prohibits government discrimination against companies in bankruptcy when administering grant programs. The court focused not on loan approval, which had already occurred, but on whether USA Rugby could use the funds to maintain operations during bankruptcy.

Despite the SBA’s objections, Judge Shannon ruled in favor of USA Rugby, allowing the organization to retain and use the funds. Billion Law's effective representation ensured that USA Rugby could continue its operations and navigate through the bankruptcy process with critical financial support.

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