To embed, copy and paste the code into your website or blog: On March 27, 2021, President Biden signed into law the COVID-19 Bankruptcy Relief Extension Act (the Extension Act). The Extension Act temporarily extends certain bankruptcy relief provisions that were enacted as part of the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), as further amended and/or extended as part of the Consolidated Appropriations Act (the CAA) which was signed into law on December 27, 2020. This alert highlights the impact of these changes on banks and other lenders. SUBCHAPTER V DEBT LIMITS Increase of Debt Limit to $7.5 million The Small Business Reorganization Act of 2019 created Subchapter V of chapter 11 of the Bankruptcy Code, and became effective on February 19, 2020, immediately before the onset of the COVID-19 pandemic. Subchapter V was enacted to streamline the reorganization process for smaller companies with debts up to $2.7 million. The CARES Act increased the debt limit for eligible debtors from $2.7 million to $7.5 million. The increase to $7.5 million was originally set to expire on March 27, 2021; however, the Extension Act further extends the $7.5 million debt through March 27, 2022.