Oak Lawn Respiratory and Rehabilitation Center, LLC v. United States Small Business Administration

Federal 7th Circuit Court
Civil Court
Paycheck-Protection Loan Forgiveness
Citation
Case Number: 
No. 25-1346, 25-1347, 25-1348
Decision Date: 
July 14, 2026
Federal District: 
N.D. Ill., Eastern Div.
Holding: 
Affirmed.
Judge: 
EASTERBROOK

Plaintiff filed a lawsuit after its application for paycheck-protection loan forgiveness was denied by the Small Business Administration. Plaintiff had received the federal loan during the Covid-19 pandemic, but when it sought forgiveness of the loan after the pandemic, its request was denied because the SBA had already met the loan forgiveness limit that applied to businesses under common control with the plaintiff. The district court granted summary judgment in favor of the defendant and plaintiffs appealed. The Seventh Circuit affirmed, finding that plaintiff was not entitled to its requested relief under federal law. (JACKSON-AKIWUMI and LEE, concurring)