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After filing lawsuit, Hidalgo County EMS received nearly $2.6 million Paycheck Protection Program loan

1 year 3 months 4 weeks ago Wednesday, June 24 2020 Jun 24, 2020 June 24, 2020 1:37 PM June 24, 2020 in News - Coronavirus Pandemic
A Hidalgo County EMS ambulance. (KRGV File Photo.)

After filing a lawsuit against the U.S. Small Business Administration, Hidalgo County EMS received a nearly $2.6 million Paycheck Protection Program loan in May.

Hidalgo County EMS — a privately owned company that provides ambulance service in Edinburg, Pharr and parts of rural Hidalgo County — filed a lawsuit against the Small Business Administration in April, when a bank rejected the company's request for a Paycheck Protection Program loan.

The company, which filed for Chapter 11 bankruptcy last year, said the Small Business Administration improperly excluded businesses in bankruptcy from the Paycheck Protection Program. The Small Business Administration defended the decision, concerned that businesses in bankruptcy posed an unacceptable risk.

A federal bankruptcy judge sided with Hidalgo County EMS. The Small Business Administration, however, appealed the decision and the 5th U.S. Circuit Court of Appeals overruled the bankruptcy judge.

In the interim, Hidalgo County EMS submitted a new Paycheck Protection Program loan application and received nearly $2.6 million.

Hidalgo County EMS disclosed the Paycheck Protection Program loan, which hasn't been previously reported, in a monthly operating report filed on Wednesday.

“We’ll release more information once the litigation is settled,” said Chief Restructuring Officer Omar Romero.

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