Federal Court Decision: No Private Right of Action Under the CARES Act, and Lenders May Impose Restrictions on Loan Eligibility Print PDF

Federal Court Decision: No Private Right of Action Under the CARES Act, and Lenders May Impose Restrictions on Loan Eligibility

Not surprisingly, litigation has already begun surrounding the recently enacted CARES Act (i.e., the Coronavirus Aid, Relief, and Economic Security Act), which is an amendment to the Small Business Act (the “SBA”).  At least one federal court has concluded that no private right of action exists under the CARES Act, and that lenders are free to impose restrictions upon who may be eligible to apply for a loan under this Act. See the below link to read the full article.