Opinion and Order — DV Diamond Club of Flint, LLC v. U.S. Small Business Administration (Dkt. 42, E.D. Mich.)

Summary

Opinion and Order Granting Plaintiffs' and Intervenors' Motions for a Preliminary Injunction (ECF Nos. 12, 23) in DV Diamond Club of Flint, LLC v. United States Small Business Administration, Case No. 20-cv-10899, in the U.S. District Court for the Eastern District of Michigan, signed by Judge Matthew F. Leitman on May 11, 2020 as ECF No. 42. The court holds that the SBA's PPP Ineligibility Rule, which bars businesses of a "prurient sexual nature" under 13 C.F.R. § 120.110(p) and the 2019 SOP, is invalid because it contravenes the PPP's eligibility terms in 15 U.S.C. § 636(a)(36)(D). The order directs the SBA to notify the plaintiffs' and intervenors' lenders by May 14, 2020 that their applications will not be denied on that basis and to guarantee their loans if they otherwise qualify. It states that this is not a nationwide injunction.

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