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.
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.