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The Archdiocese of Santa Fe has filed a lawsuit against the US Small Business Administration, claiming that the federal agency illegally prevents it from applying for a low-interest loan under a program to help small businesses affected by the new coronavirus because the Archdiocese is involved in bankruptcy proceedings.
The lawsuit was filed Tuesday in the Archdiocese’s pending Chapter 11 bankruptcy case in the U.S. bankruptcy court.
In it, the Catholic organization states that the federal government has specifically ruled on nonprofit entities and that bankrupt people are not ineligible to receive 1% interest loans from the Check Protection Program. payroll, which is part of the more than $ 2 trillion federal relief program that is being dispersed to help stabilize the economy during the pandemic.
But the Archdiocese says the form applicants must fill out indicates that applications from entities involved in bankruptcy proceedings will not be approved.
“The parishes derive a significant portion of their income from the offertory,” the complaint states, “and a significant portion of the collections of institutions take place during Holy Week which includes Easter Sunday Mass. Because the parishes have been closed… declining incomes and anticipates that as long as the “stay at home” order remains in effect, it will be difficult to continue paying wages. “
Spokeswoman Céline Baca Radigan said in a written statement on Friday that the COVID-19 pandemic is significantly affecting the Archdiocese’s “mission to safeguard the sanctity of life and provide pastoral care” in its 93 parishes, 226 missions and 16 schools across the region.
The archdiocese is asking the court to declare that the Small Business Administration overstepped its authority when it determined that bankrupt entities were not eligible for the money and changed the part of the form that prevents them from applying.
The petition acknowledges that the Small Business Administration announced on April 16 that the $ 349 billion earmarked for the paycheck protection program was already exhausted.
But it is said that “on information and belief, Congress has reached an agreement to allocate additional funds” to the program and the Archdiocese wants to be able to request it.
The Small Business Administration did not respond to messages seeking comment on this story.
The Archdiocese filed for bankruptcy in 2018 following clergy sexual abuse lawsuits that began in the 1990s. According to news reports, the Archdiocese claimed about $ 49 million in assets, including real estate, but not counting the assets that the Archdiocese declared to hold for the parishes.
