The Small Business Reorganization Act (SBRA) took effect on February 19, 2020 and provides a streamlined and cost-efficient process for small businesses to reorganize and rehabilitate their financial affairs under chapter 11 of the Bankruptcy Code. The SBRA differs significantly from standard chapter 11 in several ways which impact creditors rights in bankruptcy. In addition, the Coronavirus, Aid, Relief and Economic Security Act (CARES Act), signed into law on March 27, 2020, temporarily provides greater access to bankruptcy relief for small businesses. Lenders should be prepared for more bankruptcy filings by troubled borrowers utilizing these new laws.
This webinar will present a primer on the SBRA and CARES Act to educate and inform lenders about:
- The definition of a “small business” under the SBRA and an introduction to the new law
- The CARES Act and its impact on the SBRA and other bankruptcy laws
- The SBRA’s changes to the preference laws that reduce creditor exposure to liability
- Practical considerations for workouts and restructurings in light of increased access to bankruptcy protection by small business borrowers
This program is approved for 1.00 hours of "General" California MCLE credit.