[Congressional Record Volume 165, Number 125 (Wednesday, July 24, 2019)]
[Extensions of Remarks]
[Pages E977-E978]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               SMALL BUSINESS REORGANIZATION ACT OF 2019

                                 ______
                                 

                               speech of

                        HON. SHEILA JACKSON LEE

                                of texas

                    in the house of representatives

                         Tuesday, July 23, 2019

  Ms. JACKSON LEE. Mr. Speaker, I rise in strong support of H.R. 3311, 
``The Small Business Reorganization Act of 2019.''
  H.R. 3311, the ``Small Business Reorganization Act of 2019,'' would 
streamline the bankruptcy process by which small business debtors 
reorganize and rehabilitate their financial affairs.
  I support this legislation because it addresses the special problems 
presented by small business cases by instituting a variety of time 
frames and enforcement mechanisms designed to weed out small business 
debtors who are not likely to reorganize.
  It also requires these cases to be more actively monitored by United 
States trustees and the bankruptcy courts.
  According to the Small Business Administration (SBA) Office of 
Advocacy, approximately 20 percent of small businesses survive the 
first year, but by the five-year mark only 50 percent are still in 
business and by the ten-year mark only one-third survive.
  Under the protection of chapter 11, a debtor is given a ``financial 
breathing spell'' from most creditor collection efforts.
  This protection allows the chapter 11 debtor to continue its business 
operations while formulating a plan of reorganization to repay its 
creditors.
  Not surprisingly, while most chapter 11 business cases are filed by 
small business debtors, they are often ``the least likely to reorganize 
successfully.
  I know first hand that Hurricane Harvey hurt many small businesses 
and though we worked to help them recover, bankruptcy was the only 
option for some of them.
  While the Bankruptcy Code envisions that creditors will play a major 
role in monitoring these cases, this often does not occur, chiefly 
because creditors in these smaller cases do not have claims large 
enough to warrant the time and money to participate actively in these 
cases.
  Mr. Speaker, I urge my colleagues to join me in supporting H.R. 3311 
to help our small businesses have a chance at success during difficult 
times.

[[Page E978]]

  

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