Three Maine companies are suing the Small Business Administration for denying them federal Paycheck Protection Program loans because they are in bankruptcy.

A hotel and restaurant in Camden and trucking and logging companies in Cornville say there is nothing in the federal law that prohibits companies in bankruptcy from receiving the loans.

Two Maine hospitals that are in bankruptcy also sued after being denied loans under the program.

The Payroll Protection Program was adopted to help small businesses cover payroll and other costs during the pandemic.