USA Rugby has filed a motion in Bankruptcy Court to allow it to use funds it obtained in a loan from the Small Business Administration.

The loan was from the Paycheck Protection Program (PPP), which the federal government launched as part of the COVID-19 lockdown. The United States Rugby Football Union applied for and received a loan from the PPP program. Then the NGB asked the Bankruptcy Court for permission to use the funds in paying for day-to-day bills during the bankruptcy proceedings.

That seems like a logical move given that USA Rugby is certainly suffering from the lockdown (no rugby means players due to CIPP and pay in March and April dues didn't).

But the United States government is fighting the petition, and there will be a hearing tomorrow on the matter.

GRR has examined publicly-available documents regarding this dispute. USA Rugby has filed a motion asking the Court to use the loan funds, while the United States government has submitted a letter that says the NGB shouldn't be allowed to use the money and that the Court has no power over the SBA loans.

There's a hearing tomorrow.