Road Block.

I almost ended my internship search when I had a pretty successful interview on Monday.
But I was informed today that after speaking with the Board of Funeral Services (in Ontario) they arent allowed to hire a third student until September.

I know rules and regulations are different throughout each province and state but I was wondering if anyone has heard anything like this.

The two students they already have aren't interns. One I believe is a co-op student about to enter the program and the other is a current student who was intended to become the intern but has to return to school.

Help. Anyone have any opinions on this?