WASHINGTON – President Trump has signed into law the Small Business Reorganization Act (H.R. 3311), which House Antitrust Subcommittee Chairman David N. Cicilline (RI-01) first introduced in November 2018 with bipartisan support. The law, which goes into effect in February, will make it easier for small businesses to navigate the bankruptcy process.
Businesses with less than $2.5 million in debt will now be able to file for bankruptcy in a timelier and more cost-effective manner. While in bankruptcy reorganization, a small business will be able to negotiate with creditors while keeping its doors open, employees on payroll, and suppliers and vendors paid.
Cicilline issued the following statement on the President signing his proposal into law:
“Small businesses are the backbone of Rhode Island’s economy. As Chairman of the House Antitrust Subcommittee, one of my top priorities in Congress is to make it easier for Rhode Island entrepreneurs to succeed. For years, the bankruptcy process has been unnecessarily burdensome. Not anymore. This law will give small businesses the tools they need for a fresh start. It will help ensure we have a competitive economy that gives more innovators the opportunity to get ahead. I’m proud that my Republican colleagues worked with me to get this law on the President’s desk. This is exactly how Congress should work for the people we serve.”