Construction Trade Group Sues To Block Fed’s Unlawful Effort To Change Paycheck Protection Program (PPP) Rules
The Associated General Contractors of America filed suit today to compel Small Business Administration (SBA) and the Office of Management and Budget (OMB) to revise the questionnaire being used to reassess whether companies were eligible for Paycheck Protection Program (PPP) loans. The construction association is also asking the federal courts to restrict use of the information that the questionnaire generates until the SBA makes it available to the public and revises it.
The complaint, which the association filed in the United States District Court for the District of Columbia, asserts that the process that produced the form, and the form itself, violate the Paperwork Reduction Act and the Administrative Procedures Act, and that the federal agencies failed to meet the minimum standards for due process. The association is requesting the court to declare that the questionnaire is arbitrary and capricious, and to declare that the SBA cannot lawfully use the information that the form generates to find a company ineligible for a PPP loan or deny a company’s application for forgiveness of its loan.