The Small Business Reorganization Act of 2019 (SBRA), which became effective in February 2020, created a new subchapter within Chapter 11 of the Bankruptcy Code—Subchapter V, bringing with it sweeping changes to the way Chapter 11 bankruptcies are conducted for qualifying small businesses.

The new law was particularly timely, as the COVID-19 crisis hit the American economy about a month after its effective date. As a result of the pandemic's economic impact, Congress expanded the law's reach in March 2020, nearly tripling the maximum debt threshold for businesses to qualify for Subchapter V treatment and thereby granting access to tens of thousands of additional potential debtors.