Filings for a recently crafted bankruptcy option meant to help small businesses overcome financial distress have plummeted after the U.S. Senate failed to pass a law that would keep its restrictions in place.

When the Subchapter V option was crafted in 2019, the federal government determined that businesses with $2.7 million could qualify for the filing. But in 2020, the federal government lifted that limit to $7.5 million to help more businesses qualify and escape financial distress brought on by the pandemic. The COVID-19 experiment made a lot of attorneys in the space realize how vital of a lifeline it proved to be for many small businesses facing financial trouble.