The COVID-19 Bankruptcy Relief Extension Act of 2021 was signed this week. This law extends the $7,500,000 debt cap for businesses under the Small Business Reorganization Act of 2019 (SBRA). The extension will last for one additional year, to March 27, 2022.
The Act is less than one page long, but is of great importance to small businesses. Among the benefits it offers are the following:
There are a number of other advantages, but the above are those which are most important and most beneficial to any business owner trying to save his or her own business. We have for a long time been fans of the SBRA and Sub. V form of bankruptcy which it created. We have written extensively about this. If you would like a summary article, please contact us.