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107 in-possession to obtain credit or incur debt secured by a senior or equal lien on property of the estate that is already encumbered. Such lien (a "priming lien") can only be authorized if: (i) the trustee is unable to obtain such credit otherwise; and (ii) the existing lien holder is provided adequate protection of its interest in the collateral at issue. 11 U.S.C. § 364(d). Because of the need under certain of the provisions of Section 364 to demonstrate that credit was not otherwise available on better terms, a debtor must often seek to obtain multiple offers for financing from the market before seeking court approval. Section 364(e) of the Bankruptcy Code provides protection to a lender that provided the credit in good faith. If court authorization to obtain credit or incur debt is reversed or modified on appeal, the appeal will not affect the validity of any debt incurred or lien or priority granted under Section 364 as long as the lender acted in good faith. It does not matter whether or not the lender knew of the pending appeal as long as it acted in good faith. The court may not schedule a hearing on a motion seeking authorization to obtain credit earlier than fourteen days after the motion is served, provided that an interim hearing authorizing emergency funding to avoid immediate and irreparable harm may be held before fourteen days have passed. F ED. R. BANKR. P. 4001(c)(2). Notably, in response to the COVID-19 pandemic, a new subsection (g) was added to Section 364 under the CAA Amendments. This subsection provides that courts may now authorize a debtor-in-possesion or trustee under certain chapters of the Bankruptcy Code to obtain a Paycheck Protection Program ("PPP") loan. In particular, Section 364(g) only applies to debtors operating under certain sections of Chapter 12, Chapter 13 and Subchapter V, and not to Chapter 11 debtors who have not filed under Subchapter V. Additionally, the Section 364(g) amendment will expire in December 2022. 11 U.S.C. § 364(g).

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