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Small Business Reorganization Act

The Small Business Reorganization Act (SBRA) is a U.S. law designed to help small businesses reorganize their debts more efficiently. Enacted in 2019, it streamlines the bankruptcy process, making it more accessible and less costly for small companies. Under the SBRA, businesses can propose a repayment plan to their creditors while retaining control of their operations. This law aims to provide struggling small businesses a better chance to survive by allowing them to reorganize without the burdens typically associated with traditional bankruptcy processes.

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    The Small Business Reorganization Act (SBRA) is a U.S. law designed to help small businesses restructure their debts more efficiently under bankruptcy protection. Enacted in 2019, it provides a streamlined process for businesses with debts of up to $7.5 million, allowing them to create a feasible repayment plan while maintaining control of their operations. The SBRA aims to help struggling businesses emerge from bankruptcy while preserving jobs and enabling opportunities for recovery, ensuring a quicker and less costly path compared to traditional bankruptcy procedures.