NEGUSE, CLINE BIPARTISAN BICAMERAL BILL TO PROTECT SMALL BUSINESS OWNERS FROM BANKRUPTCY HEADS TO PRESIDENT BIDEN'S DESK FOR SIGNATURE

Press Release

Yesterday, Congressman Joe Neguse's bipartisan Bankruptcy Threshold Adjustment and Technical Corrections Act, to allow small businesses to restructure debts in light of economic hardships associated with the Coronavirus pandemic, passed the House of Representatives. The bill, co-led by Congressman Ben Cline in the House and U.S. Senators Grassley and Durbin in the Senate, now heads to the President's desk for signature.

"The Coronavirus pandemic had severe impacts on our economy, creating strain for small business owners and harming local entrepreneurs. There is no reason that these families, communities, and aspirational individuals should have to face the harsh consequences of defaulting on their payments as a result of this global disaster." said Congressman Joe Neguse. "I was proud to work with my colleagues in both chambers to enhance protections for small businesses, and look forward to the President signing our bill into law."

"The Small Business Reorganization Act has served as a lifeline for struggling businesses over the past two years," Cline said. "Since its inception, the majority of small business debtors have chosen to proceed under the provisions of this bill, meaning more entrepreneurs have been able to keep their doors open and employees on payroll during these uncertain times. I'm pleased that passage of the Bankruptcy Threshold Adjustment and Technical Corrections Act will ensure even more businesses can take advantage of the initial bill as Americans face continued economic hardship."

The legislation calls for a two-year extension to the debt limit for small businesses electing to file for bankruptcy under subchapter V of Chapter 11 at $7.5 million, and increases the debt limit for individual Chapter 13 filings to $2.75 million.

Background:

As Co-Chair of the Congressional Caucus on Innovation and Entrepreneurship, Congressman Neguse has championed multiple bills to expand opportunities for small businesses and to help them weather the economic impacts of the COVID-19 pandemic. Recently Neguse's bill, the PRICE Act, to spur local economic growth and expand partnership opportunities between small businesses and the federal government was signed into law by President Biden. Neguse also introduced legislation to expand the research and development tax credit. Additionally, following the Cameron Peak, East Troublesome Fires, and after the Marshall Fire, Congressman Neguse helped secure a disaster declaration to bring in Small Business Administration relief to support businesses impacted by the fires.

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