Buffalo Catholic Diocese argues for federal coronavirus aid

May 5, 2020

The Buffalo and Rochester Catholic dioceses are joining together in a federal lawsuit seeking to borrow money from the federal Paycheck Protection Program.

The two dioceses were denied eligibility because both are under bankruptcy protection.

Credit File Photo / WBFO News

The Buffalo News reports that Buffalo diocesan attorneys are arguing that the Small Business Administration acted illegally in excluding them from applying for a $1.7 million loan, part of the $659 billion allocated by Congress to help businesses make payroll during the COVID-19 pandemic.

In court papers, the Buffalo diocese says without the PPP loan, they will be forced to lay off or furlough essential employees, which will have a permanent effect on the administration of its Chapter 11 bankruptcy case.

The Buffalo diocese filed for bankruptcy on Feb. 28, while the Rochester diocese filed in September of last year.