Designed to expedite the process and reduce the costs of bankruptcy for small businesses, the Small Business Reorganization Act of 2019 (SBRA), which became effective in February 2020, might be just what the doctor ordered for small businesses struggling to survive the pandemic. Small business elections are expected to surge in the coming year as a result of the COVID-19 crisis and the CARES Act’s temporary debt limit expansion for small business bankruptcy cases. We discussed how the SBRA alters the Chapter 11 process with which lenders are familiar.

Monica Clark, Partner, Dorsey & Whitney LLP
Erin Bryan, Of Counsel, Dorsey & Whitney LLP

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