Cline, Cicilline introduce Small Business Reorganization Act
Ben Cline (R-Virginia) and David Cicilline (D-Rhode Island), along with Doug Collins (R-Georgia) and Steve Cohen (D-Tennessee), introduced H.R. 3311, the Small Business Reorganization Act, on Tuesday.
The bill would simplify the process for small businesses to use bankruptcy as a means of reorganization.
Under the Small Business Reorganization Act, businesses with less than $2.5 million in debt would be able to file for bankruptcy in a timelier and more cost-effective manner. While in bankruptcy reorganization, a small business would be able to negotiate with creditors while keeping the doors open, employees on payroll, and suppliers and vendors paid.
“Our districts depend on its small businesses, where constituents shop local and support their neighbors,” Cline said. “They are convenience stores, restaurants, and pharmacies. Those who endeavor to open and run a small business are proud of their work and their standing in our communities. Unfortunately, they also take on a sometimes-insurmountable financial burden, with small businesses accounting for many business bankruptcy filings. When they are forced to close, it has a great impact on the communities these businesses call home. I am proud to introduce the Small Business Reorganization Act with Chairman Cicilline, to provide an important avenue of relief to the people in our communities who employ countless individuals and drive our local economies.”
“Small businesses and their employees are the backbone of our nation’s economy,” Cicilline said. “We have a responsibility to create a competitive environment that works for small businesses and works for the American people. The Small Business Reorganization Act is a critical step in making sure that our bankruptcy system gives small businesses in financial distress the tools they need for a fresh start.”
“Small businesses are the backbone of our economy, and I want to make sure they have the tools to keep their doors open,” Collins said. “The Small Business Reorganization Act would help business owners maintain more control over their life’s work while overcoming difficult times. I appreciate the leadership of Congressmen Cicilline, Cline and Cohen on this important legislation.”
“Memphis is home to many well-qualified, high-potential entrepreneurs who do great work, which is why throughout my career I have pursued legislation and policies to help small businesses grow and boost our city’s economy,” Cohen said. “This common sense solution would simplify reorganizing in bankruptcy and relieve the stress inherit in the process.”