News & Analysis as of

CARES Act Commercial Bankruptcy Relief Measures

Miller Canfield

Debt Limit to Qualify for Subchapter V and Chapter 13 Set to Revert This Summer

Miller Canfield on

In 2022, Congress passed the Bankruptcy Threshold Adjustment and Technical Corrections Act (the “Act”), raising the debt limits for bankruptcy cases under the Small Business Reorganization Act (“SBRA,” a.k.a. “Subchapter V”)...more

Womble Bond Dickinson

Sun Sets on Increased Subchapter V Debt Limit for Now

Womble Bond Dickinson on

A key bankruptcy-related response to the pandemic has ended as the increased debt limits under subchapter V of chapter 11, passed by Congress in the CARES Act, have expired. In an effort to provide bankruptcy relief and...more

Ward and Smith, P.A.

Congratulations Bankruptcy Graduates! You Are Now Eligible for PPP Loans.

Ward and Smith, P.A. on

To be eligible for a Paycheck Protection Program ("PPP") loan, the applicant must certify on the borrower application that the applicant and any owner of 20% or more of the applicant are not “presently involved in any...more

Dunlap Bennett & Ludwig PLLC

Bankruptcy Update: The COVID-19 Bankruptcy Relief Act of 2021

On March 27, 2021, President Biden signed the COVID-19 Bankruptcy Relief Extension Act (the “Extension Act”) into law as Pub.L. 117-5. In relevant part, it extends by a year increased debt limits for small businesses and...more

Miller Canfield

The Impact of the Bankruptcy Relief Act and Other Recent Bankruptcy Code Changes

Miller Canfield on

Bankruptcy law has seen many changes in 2020 and 2021. Some of these were enacted in response to COVID, but many other changes were included in the Bankruptcy Code before the pandemic. This article highlights some of these...more

Kerr Russell

Increased Bankruptcy Debt Ceiling Extended An Additional Year

Kerr Russell on

As we recently reported, the temporary increase of the “debt ceiling” for small business debtors under Subchapter V of the Bankruptcy Code from $2,725,625 to $7,500,000 was set to “sunset” or expire on March 31, 2021. That...more

Genova Burns LLC

President Biden Signs the “COVID-19 Bankruptcy Relief Extension Act”

Genova Burns LLC on

On March 27, 2021, President Biden signed the “COVID-19 Bankruptcy Relief Extension Act”. The Legislation will extend personal and small business bankruptcy relief provisions that were part of last year’s CARES Act through...more

Bradley Arant Boult Cummings LLP

A Business Bankruptcy Overview: How Subchapter V, the CARES Act and the Consolidated Appropriations Act Have Expanded Relief for...

In February 2020, just prior to the COVID-19 outbreak, the Small Business Reorganization Act of 2019 (Subchapter V) took effect. Subchapter V amends Chapter 11 of the Bankruptcy Code to allow certain individuals and...more

McGuireWoods LLP

Senators Propose COVID-19 Bankruptcy Relief Extension Act to Extend Covid-19 Changes to the Bankruptcy Code

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The COVID-19 pandemic hit the United States with force in March 2020. As the virus rapidly spread, the federal government responded with temporary changes to the Bankruptcy Code through the Coronavirus Aid, Relief, and...more

Cozen O'Connor

Congress Enacts Modification to Bankruptcy Procedures Governing Assumption and Rejection of Leases

Cozen O'Connor on

The Consolidated Appropriations Act of 2021 (the Appropriations Act) is a $2.3 trillion spending bill that combines stimulus relief for the COVID-19 pandemic and an omnibus spending bill for the federal fiscal year. ...more

Bowditch & Dewey

Rent Abatement, PPP Loans (Maybe), and Other Bankruptcy Relief in the Appropriations Act

Bowditch & Dewey on

On December 27, 2020, the Consolidated Appropriations Act, 2021 became law. In addition to funding the government and providing coronavirus relief, the Act contains several intriguing amendments to the Bankruptcy Code. The...more

Miller Canfield

Congress Permits SBA to Make PPP Loans to Debtors in Bankruptcy, SBA Says "No"

Miller Canfield on

In June and December of 2020, Miller Canfield reported that the Fifth and Eleventh Circuits had held that the Small Business Administration ("SBA") may exclude debtors in bankruptcy from consideration for Paycheck Protection...more

Miles & Stockbridge P.C.

Federal Consolidated Appropriations Act Alters Commercial Landlord Rights Under Bankruptcy Code

The Consolidated Appropriations Act of 2021 (CAA) was signed into law on December 27, 2020, after receiving overwhelming bipartisan support. The Act, in addition to providing appropriations for various government departments,...more

Pullman & Comley, LLC

New Bankruptcy Relief Provisions Brought to You by the 2021 Federal Appropriations Act

Pullman & Comley, LLC on

The new Consolidated Appropriations Act, 2021 (the “Act”), which was signed into law on December 27, 2020 (H.R. 133), includes within its 5,593 pages a number of new bankruptcy relief provisions for businesses as part of what...more

Obermayer Rebmann Maxwell & Hippel LLP

Expanded Chapter 11 Small Business Reorganization Act Eligibility: A Temporary Opportunity for New Jersey and Pennsylvania...

The COVID-19 pandemic has upset the expectations of many business owners. Lines of business that seemed profitable are now struggling, and previously underappreciated lines of business are blossoming. The pandemic will bring...more

Obermayer Rebmann Maxwell & Hippel LLP

Big Changes to Small Business Bankruptcies: Timely Amendments to The Bankruptcy Code Throw A Lifeline to Small Businesses...

The Small Business Reorganization Act (“SBRA”), which became effective February 19, 2020 after being signed into law in August 2019, created a new Subchapter V of Chapter 11 of the Bankruptcy Code with a stated purpose “to...more

Epiq

Predictions for Bankruptcies in 2021

Epiq on

The U.S. economy has experienced a tumultuous year. COVID-19 has caused businesses and individuals alike to turn to bankruptcy in order to keep their creditors at bay. Others have delayed filing because they have been able to...more

Robins Kaplan LLP

Financial Daily Dose 9.11.2020 | Top Story: Citigroup Names Fraser First Female CEO

Robins Kaplan LLP on

Citigroup has chosen it President, Jane Fraser, to replace CEO Michael Corbat when he retires in February 2021. Fraser will become “the first woman to lead a major financial institution in the United States.” She’s been with...more

Nelson Mullins Riley & Scarborough LLP

The Small Business Reorganization Act: An Unintended Lifeline For Small Businesses Considering Restructuring Due to COVID-19

For years, small business debtors have struggled with the intricacies of Chapter 11, the debt limitations of Chapter 13 and Chapter 7 bankruptcy liquidations. Stringent requirements and procedural hurdles often made...more

Hogan Lovells

Coronavirus: The Hill and the Headlines – COVID-19 D.C. Update – August 2020 #1

Hogan Lovells on

In Washington - The divide between Democrats and Republicans continues as talks today have still resulted in no deal on a new coronavirus stimulus package. House Speaker Nancy Pelosi (D-CA), Senate Minority Leader Chuck...more

Miller Canfield

Bankruptcy Rulings: Debtors Do Not Have to Be Currently Engaged in Business and Commercial Activities to Qualify for SBRA Relief

Miller Canfield on

The recently enacted Small Business Reorganization Act ("SBRA") is available to help "small business debtors" with debts of no more than $2,725,625 (temporarily increased to $7,500,000 for one year by the CARES Act). Although...more

Morgan Lewis

Debtors Need Not Apply? Continuing Developments on the SBA’s Authority to Deny PPP Loans to Debtor Applicants

Morgan Lewis on

The Small Business Administration on April 24 issued an update to an interim final rule, crystalizing its view that applicants that have sought protection under the US Bankruptcy Code are not qualified borrowers under the...more

Rosenberg Martin Greenberg LLP

My Business Is In Bankruptcy: Can It Get A PPP Loan Or Not?

In response to the COVID-19 pandemic, Congress enacted a Paycheck Protection Program (“PPP”) under which businesses adversely impacted by the pandemic may obtain loans from the Small Business Administration (“SBA”) and use...more

Hogan Lovells

Coronavirus: The Hill and the Headlines – COVID-19 D.C. Update May 2020

Hogan Lovells on

In Washington: COVID-19 cases may not peak in the D.C. region until mid- or even late May.  The Senate is back in session, but it may be a while before the House returns as leaders have not reached a bipartisan agreement on...more

Saul Ewing LLP

A Little Known Secret of the CARES Act – Increased Ability for Companies to Seek Relief Under the Newly Enacted Small Business...

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As a result of COVID-19, it is likely that there will be a tsunami of restructuring activity this year and for the near future. Typically, when a business was in financial distress, it would first try out-of-court workout...more

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