Small business bankruptcy measure heads to president’s desk

Sen. Sheldon Whitehouse (D-RI) and Rep. David N. Cicilline (D-RI) recently touted the benefits of a bill designed to streamline bankruptcy procedures while providing tools aiding business owners’ ability to keep companies afloat and preserve jobs.

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The Small Business Reorganization Act, which they sponsored with Sen. Chuck Grassley (R-IA) and Rep. Ben Cline (R-VA), advanced both houses and now awaits the president’s signature.

“The path to success is not a straight line for many small businesses,” Whitehouse said. “Our bill will improve the bankruptcy process to give struggling small businesses better tools to get back on solid footing and preserve jobs. I’m grateful to Senator Grassley for his longtime partnership on this issue and to Congressman Cicilline for his support.”

The bill would add a new subchapter V to Chapter 11 to streamline the bankruptcy process for small business, noting the new process will increase the chances of small businesses using the bankruptcy process to get a fresh start.

“This important legislation gives small businesses who have been pushed to the brink of failure the tools they need to reorganize,” Cicilline said. “I’m thankful for Senator Grassley’s and Senator Whitehouse’s support, and I look forward to seeing the bill signed into law.”