Small Businesses to Get Added Bankruptcy Relief in Virus Package (1)

More small businesses would be able to take advantage of a new provision of the bankruptcy code aimed at making the reorganization process cheaper and easier under the Senate-passed $2 trillion coronavirus relief package.

The bill (H.R. 748), passed Wednesday by the Senate 96-0, would raise the debt threshold for small businesses to take advantage of the Small Business Reorganization Act, from the current $2.7 million to $7.5 million. The House is set to vote on the bill Friday.

The SBRA, which was signed by President Trump in August, created a subchapter to the bankruptcy code’s Chapter 11 to cut ...