New bankruptcy protections for small businesses, veterans, and farmers that cleared the Senate Aug. 1 are steps in the right direction but could be “more muscular,” legal analysts say.

“It’s like putting a band aid on a really bad cut. It’s going to do a little to help and it addresses the problem, but it’s not enough,” Bruce Markell, a bankruptcy law professor at Northwestern’s Pritzker School of Law, told Bloomberg Law Aug. 2.

The Small Business Reorganization Act (H.R 3311) would amend Chapter 11 to streamline the bankruptcy process for businesses with less than $2.7 million in debt, but...