Opinion ID: 6323764
Heading Depth: 2
Heading Rank: 3

Heading: Post-CARES Act Congressional Action

Text: On December 27, 2020, Congress enacted the Consolidated Appropriations Act 2021, Pub L. No. 116-260, 134 Stat. 1182 (2020). As relevant here, the Consolidated Appropriations Act amended Section 525 to prohibit the exclusion of debtors in bankruptcy from certain benefits under the CARES ACT—namely, foreclosure moratoriums, eviction moratoriums, and the forbearance of some residential mortgages—solely based on their status as debtors in bankruptcy. See reversed on grounds other than the Section 525(a) claim. See In re Hidalgo Cty. Emergency Serv. Found., 962 F.3d at 840–41 (reversing the bankruptcy court on the grounds that, per Fifth Circuit precedent, the SBA had sovereign immunity from injunctive relief under Section 634(b)(1), and thus had been improperly enjoined). 14See In re Dancor Transit, No. Case No. 2:20-bk-70536, 2020 WL 4730896, at –8 (Bankr. W.D. Ark. June 22, 2020); Tradeways, Ltd. v. U.S. Dep’t of the Treasury, Case No. ELH-20-1324, 2020 WL 3447767, at  (D. Md. June 24, 2020); In re Vestavia Hills, Ltd., 630 B.R. 816, 848–49 (S.D. Cal. 2021); Archbishop of Agaña v. U.S. Small Bus. Admin, Adv. Proc. No. 20-00002, 2021 WL 1702311, at  (D. Guam Feb. 23, 2021). 18 11 U.S.C. § 525(d) (“A person may not be denied relief under sections 4022 through 4024 of the CARES Act (15 U.S.C. 9056, 9057, 9058) because the person is or has been a debtor under this title.”). Notably, this amendment did not include PPP in the list of covered benefits, nor did it alter the text of Section 525(a). Additionally, the Consolidated Appropriations Act included provisions continuing the PPP through the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (“Economic Aid Act”), which extended the SBA’s authority to make PPP loans through March 31, 2021, and provided a mechanism for certain bankrupt debtors to seek and obtain approval for PPP loans. 15 See Pub. L. No. 116-260, div. N, tit. III, 134 Stat. at 1993 (Economic Aid Act), 2019 (extension to March 31). Springfield does not argue that it could qualify for PPP loans under the Economic Aid Act.