A bipartisan bill sponsored by Congressman Ben Cline (VA-06), H.R. 3311, the Small Business Reorganization Act was signed into law today by the President.
Understanding the challenges small business owners face, this Act simplifies the process for entrepreneurs to use bankruptcy as a means of reorganization. Under this bill, businesses with less than $2.5 million of debt will be able to file for bankruptcy in a timelier and more cost-effective manner. While in bankruptcy reorganization, a small business will be able to negotiate with creditors while keeping the doors open, employees on payroll, and suppliers and vendors paid.
“While it is my hope small business owners will never need to use the provisions of this bill, I am pleased that they now will have the necessary resources to make successful the businesses that they have worked so hard to build. ” Cline said.
This action follows on the heels of the President signing Rep. Cline’s LEGION Act earlier this month.