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On Aug. 23, 2019, President Trump signed into law the Small Business Reorganization Act of 2019 (“SBRA” or the “Act”), Pub. L. No. 116-54 (2019). The SBRA, which becomes effective on Feb. 19, 2020, seeks to address problems encountered by small business debtors in reorganizing under the provisions of the United States Bankruptcy Code. The Act creates a new Subchapter V to Chapter 11, which aims to make small business bankruptcy proceedings more expeditious and less costly. It also contains provisions that may reduce a creditor’s leverage and require their greater vigilance in a small business case.

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