Small Business Administration v. G. M. McClellan Trustee, Matter of S. H. Byquist, an Individual, Doing Business as Western Distributors, Bankrupt

BREITENSTEIN, Circuit Judge.

In this bankruptcy proceeding the court below affirmed a referee’s order allowing a claim of Small Business Administration as an unsecured claim and denying it any priority. The only question on appeal is the right to priority over other unsecured creditors.

The facts are not in dispute. Byquist, the bankrupt, applied on a Small Business Administration 1 form, entitled “Limited Loan Participation Application for Loan,” to the Brookville State Bank of Brookville, Kansas, for a $20,000 loan. On October 30, 1956, the Bank endorsed the application to show that it was…