Can Corporate Bankruptcy Help Your Small Business? Expansion of the Small Business Reorganization Act

April 14, 2020

In the wake of the COVID-19 pandemic, the country’s small businesses have suffered systemic and catastrophic disruption to operations, demand and supply that will make it impossible for many such businesses to fulfill their obligations to creditors and to access financing for continued business operations. The recent enactment of the Small Business Reorganization Act (“SBRA”) of 2019, which created a new Subchapter V (“SubV”) as part of chapter 11 of title 11 of the United State Code (the “Bankruptcy Code”) both extends the eligibility requirements of the Chapter 11 process to more small businesses, as well as expands the leverage and options by which small businesses can restructure their financial obligations and rehabilitate the economic viability of their operations. This article examines the significant advantages afforded to small businesses under SubV.

The articles on our website include some of the publications and papers authored by our attorneys, both before and after they joined our firm. The content of these articles should not be taken as legal advice. The views and opinions expressed in this article are those of the author(s) and do not necessarily reflect the views or official position of Robins Kaplan LLP.

Disclaimer

Scott F. Gautier

Partner

Chair, Corporate Restructuring and Bankruptcy Group

Maria Cho

Associate

Back to Top