S. 2679Senate117th Congress (2021-2023)In Committee

Small Business Reorganization Technical Corrections Act

AI-Generated Summary

Updated February 8, 2026 at 6:15 AM UTC

The bill updates Chapter 11 provisions to clarify who qualifies as a small‑business debtor and to refine the rules for trustees and plan confirmation under the Small Business Reorganization Act. It changes definitions in the code, expands trustee powers to run a debtor’s business, and adds new criteria for confirming a reorganization plan. The changes affect small corporations that use Chapter 11 and the trustees overseeing those cases.

Key Provisions

Redefines “small business debtor” to refer only to a corporation meeting the existing criteria, removing the reference to “an issuer.”
Amends the general “debtor” definition to specify “affiliated debtors under this title” and aligns the small‑business language with the corporation definition.
Modifies trustee duties, allowing trustees to take possession and, separately, to perform duties, and explicitly authorizes them to operate the debtor’s business.
Revises the plan‑confirmation test, requiring either certainty that the debtor can make all payments or a reasonable likelihood plus protective remedies such as liquidation of non‑exempt assets.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on the Judiciary.

Judiciary Committee

August 9, 2021

View full timeline

SenateIntro Referral

Introduced in Senate

August 9, 2021

SenateIntro Referral

Read twice and referred to the Committee on the Judiciary.

Judiciary Committee

August 9, 2021

Bill Text

Latest available legislative text

Reading Mode

Raw Text PDF XML

Introduced in SenateIssued August 9, 2021

117th CONGRESS

1st Session

S. 2679

IN THE SENATE OF THE UNITED STATES

August 9, 2021

Mr. Grassley (for himself and Mr. Whitehouse) introduced the following bill; which was read twice and referred to the Committee on the Judiciary

A BILL

To amend title 11, United States Code, to make clarifications with respect to amendments made by the Small Business Reorganization Act, and for other purposes.

Short title

This Act may be cited as the Small Business Reorganization Technical Corrections Act.

Title 11 amendments

(a)

Definition of small business debtor

Section 101(51D)(B)(iii) of title 11, United States Code, is amended by striking an issuer and all that follows and inserting a corporation described in clause (ii)..

(b)

Definition of debtor

Section 1182(1)(B) of title 11, United States Code, is amended—

(1)

in clause (i), by inserting under this title after affiliated debtors; and

(2)

in clause (iii), by striking an issuer and all that follows and inserting a corporation described in clause (ii)..

(c)

Trustee

Section 1183(b)(5) of title 11, United States Code, is amended—

(1)

by striking possession, perform and inserting “possession—

(A)

perform

;

(2)

in subparagraph (A), as so designated—

(A)

by striking , including operating the business of the debtor; and

(B)

by adding and at the end; and

(3)

by adding at the end the following:

(B)

be authorized to operate the business of the debtor;

(d)

Confirmation of plan

Section 1191(c) of title 11, United States Code, is amended by striking paragraph (3) and inserting the following:

(3)

(A)

The debtor will be able to make all payments under the plan; or

(B)

(i)

there is a reasonable likelihood that the debtor will be able to make all payments under the plan; and

(ii)

the plan provides appropriate remedies, which may include the liquidation of nonexempt assets, to protect the holders of claims or interests in the event that the payments are not made.