Popular Small Business Bankruptcy Program Expansion to Expire

Widely supported bankruptcy rules that allow more companies to take advantage of small business bankruptcy benefits are all but guaranteed to expire within days, according to sources familiar with the matter.

Congress expanded the program to cover more small businesses as part of Covid-19 pandemic relief in 2020 by increasing the maximum amount of debt they can have to $7.5 million from $2.7 million.

Sen. Dick Durbin (D-Ill.) in April introduced a bipartisan bill (S. 4150) that would’ve allowed the $7.5 million limit to stay in place for another two years. But with the House of Representatives out ...