The Short answer is YES! The question often comes up whether Paycheck Protection Program (PPP) Loans or Economic Injury Disaster Loans (“EIDL”)  from the U.S. Small Business Administration (SBA) are discharegeable in Bankruptcy.  These loans emerged primarily during the Covid-19 pandemic. EIDLs under $25,000 were unsecured, while those above $25,000 required collateral from the business. Loans over $200,000 also required a personal guarantee, making the guarantor responsible for the debt. Unfortunately, as these loans come due for payment in 2023 in light of the economic woes of recession, inflation, and ever increasing interest rates, many businesses remain unable to pay

On April 6, 2020, California Courts issued Emergency Rules on Evictions and Foreclosures.  The Judicial Council adopted  the emergency rules for all California courts. The rules effectively stays all evictions and foreclosures except those necessary to protect the health and safetly of the public.   The new emergency rules are applicable to all evictions and foreclosures in California Courts, whether they are based on a tenant’s missed rent payment or another reason. The new rule will apply to evictions and foreclosures for 90 days from when Governor Newsome lifts the state of emergency related to the COVID-19 pandemic, or until it

On Friday, March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law. Part of that Act is the Paycheck Protection Program (“PPP”) which authorizes up to $349 billion in forgivable loans to small businesses, sole professorships, and self employed to pay their employees and/or themselves during the COVID-19 crisis. All loan terms are the same for everyone.  Crucial to the PPP is average monthly payroll.     Essentially, the PPP provides a forgivable loan to businesses based upon average monthly payroll costs for 8 weeks.  Accordingly, the SBA will forgive loans under the PPP