On Sunday, December 27, 2020, President Trump signed into law the Consolidated Appropriations Act, which provides $900 billion in a second wave of economic stimulus relief for industries and individuals faced with challenges from the COVID-19 coronavirus. This legislation supplements the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and further amends several provisions of title 11 of the United States Code (the “Bankruptcy Code”) by providing financially distressed small businesses and individuals with greater access to bankruptcy relief. Chapter 11 debtors may even have a way to receive CARES Act funding if the Small Business Act Administrator determines these debtors are eligible.
Importantly, the Consolidated Appropriations Act includes two key amendments for commercial landlords: (1) reduced preference exposure and (2) increased rent deferral under executory contracts.