On December 27, 2020, the Consolidated Appropriation Act
("CAA") was signed into law. The nearly 5,600-page bill
is reportedly the longest bill ever passed by Congress. In addition
to funding the federal government in 2021 and providing
COVID-related relief to individuals and businesses, the new law
amends the Bankruptcy Code in at least nine respects. Most of the
amendments sunset in either one or two years. One of the amendments
will become effective only if the Small Business Administration
signs off on it.
A brief description of the amendments follows.
1. PPP loans to debtors (or trustees)
The Coronavirus Aid, Relief, and Economic Security Act (the
“CARES Act”), enacted on March 27, 2020, created the
Paycheck Protection Program (the "PPP"), the now-familiar
forgivable loan program administered by the Small Business
Administration ("SBA"). Almost immediately after the
passage of the CARES Act, debtors began applying for PPP loans,
triggering a controversy
