On March 27, 2021, President Biden signed into law H.R. 1651, COVID-19 Bankruptcy Relief Extension Act of 2021. The bill will preserve Covid-related relief payments for businesses and will prevent such payments from being seized by creditors. The bill also extends the Small Business Reorganization Act’s (SBRA) expanded debt limits from $2.7 million to $7.5 million until March 27, 2022. Petitions under the SBRA, a subchapter of Chapter 11 of the Bankruptcy Code provide a more streamlined reorganization process for small businesses. The PPP program was also extended until June 30, 2021.
The contents of this Alert are for informational purposes only and do not constitute legal advice. If you have any questions about this Alert, please contact the Shulman Rogers attorney with whom you regularly work or Michael Lichtenstein in the Bankruptcy, Restructuring and Creditors’ Rights group.
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