American Small Business League v. Small Business Administration

BACKGROUND

21 On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act 22 (“CARES Act”) was enacted in response to the COVID-19 pandemic, see CARES Act, 23 Pub. L. 116-136, 134 Stat. 281 (2020), which Act, by amending Section 7(a) of the Small 24 Business Act, 15 U.S.C. § 636(a), established the Paycheck Protection Program (“PPP”), 25 see id. § 1102(a). Under the PPP, the SBA is authorized to provide small businesses 26 27 with loans where the applicant certifies, inter alia, “the uncertainty of current economic conditions makes necessary the loan request to support . . . ongoing operations.” See id. § 1102(a)(2)(G)(i)(I). PPP loans can be used to cover a number of business expenses, including “payroll costs,” “costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums,” “rent,” and “utilities.” See id. § 1102(a)(2)(F)(i). On April 24, 2020, Congress passed, and the President signed, legislation by which the initial allocation for PPP loans was raised to $659 billion. See Act of April 24, 2020, Pub. L. 116-139, 134 Stat. 620 (2020). As of …