Cline legislation to aid small businesses signed into law over the weekend
WASHINGTON, D.C. (WHSV/Press Release from Congressman Ben Cline’s Office) — On Saturday, March 27, President Biden signed H.R. 1651, the COVID-19 Bankruptcy Relief Expansion Act of 2021, which was introduced by Congressman Ben Cline and House Judiciary Committee Chairman Jerry Nadler (NY-10).
According to a press release from Congressman Ben Cline’s office, the action follows to 2019 passage and signing of Cline’s Small Business Reorganization Act, which simplified the process for entrepreneurs to use bankruptcy as a means of reorganization.
Under that bill, businesses with less than $2.7 million of debt could file for bankruptcy in a timelier and more cost-effective manner.
The press release says in 2020, a provision in the CARES act raised the $2.7 million threshold to $7.5 million. That provision was set to expire on March 27, 2021, but the COVID-19 Bankruptcy Relief Extension Act of 2021 extended the provision for an additional year.
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