In re Hidalgo Cty. Emergency Serv. Found.,  No. 20-40368 (5th Cir. June 22, 2020) (Smith, Higginson, Engelhardt)

In this case, the Fifth Circuit held that an injunction against the SBA related to the exclusion of bankruptcy debtors from receiving PPP funds made available under the CARES Act was improper. Judge Smith's opinion for a unanimous panel explains that the injunction ran afoul of Fifth Circuit precedent holding that all injunctive relief against the SBA is absolutely prohibited:

That may be the law in the Fifth Circuit, but it is apparently a controversial position because it only took seven days for another federal court to hold otherwise:

The Fifth Circuit did recently hold that an injunction against the SBA related to the exclusion of bankruptcy debtors from receiving PPP funds was improper, but that was based on Fifth Circuit precedent holding that all injunctive relief against the SBA was absolutely prohibited. In re Hidalgo Cty. Emergency Serv. Found., ––– F.3d ––––, No. 20-40368, 2020 WL 3411190, at *1–2 (5th Cir. June 22, 2020). The plaintiffs have pointed to no such precedent in this circuit requiring such a result. Therefore, the court finds that injunctive relief in this case is available against the SBA.

Defy Ventures, Inc. v. U.S. Small Bus. Admin., No. CV CCB-20-1736, 2020 WL 3546873, at *6 (D. Md. June 29, 2020).

In re Hidalgo Cty. Emergency Service Foundation (Potential Circuit Split Alert)
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