Today Congress passed, and the President is expected to sign, a $2 trillion coronavirus stimulus bill. Included among the provisions of the landmark legislation is a temporary expansion of the Subchapter V debt limit from $2,725,625 to $7.5 million for a period of one year. This change greatly increases the pool of small businesses and individuals eligible for relief under the Small Business Reorganization Act (“SBRA”) that came into effect in February 2020.
The SBRA provides a streamlined Chapter 11 reorganization process for qualified small businesses and individuals, reducing reorganization costs, while providing an opportunity for business owners to retain equity without paying their creditors in full. With unprecedented closures and business interruptions, the SBRA may pave the way for those impacted by COVID-19 to address their debts while maintaining adequate cash flow.
COVID-19 Stimulus Package Temporarily Expands Availability of Small Business Reorganization Act
Business Lawyers Look to Amended Bankruptcy Provision in $2 Trillion Stimulus Package
Curran Antonelli represents a broad range of businesses and corporate entities, private equity funds, as well as governmental agencies and other interested parties in all phases of the bankruptcy process and in bankruptcy related transactions and litigation. As advocates and trusted business advisors, our well-established foundation of knowledge and understanding of our clients’ business interests, enables our attorneys to deliver unparalleled individualized attention to our clients of all sizes with their litigation and corporate transactional needs.