SMALL BUSINESS REORGANIZATION ACT
A. Financial Challenges to Small Businesses Due to Covid-19
The social distancing/shutdown protocol/declaration of emergency (and the impending recession) because of the coronavirus has led (and will continue to lead) to extraordinary financial impact on small businesses. For small businesses that are unable to successfully negotiate with their creditors, lenders, and/or landlords, an alternative option to consider is to file for chapter 11 bankruptcy relief under the Small Business Reorganization Act (the “SBRA”) which went into effect on February 20, 2020.