President Trump Signs Cline Legislation to Support Small Businesses

WASHINGTON, DC – President Trump has signed H.R. 7730, Congressman Ben Cline’s (VA-06) Bankruptcy Threshold Adjustments Act of 2026, into law, marking an important step toward helping small businesses overcome financial challenges, protect jobs, and keep their doors open to serve their communities. “I am proud to support small businesses across our Nation by ensuring they have the tools they need to navigate financial challenges, protect jobs, and keep their doors open,” said Rep. Cline. “Small businesses are the backbone of our economy, driving growth, creating jobs, and strengthening our communities. I will continue fighting for policies that give small business owners the resources and flexibility they need to overcome challenges, succeed, and keep our economy strong.” --- For years, small businesses across the Commonwealth of Virginia have faced significant financial challenges, making it difficult to recover, rebuild, and regain their footing. Right here in Virginia’s Sixth District, we have had multiple small businesses including restaurant and catering companies, a roofing company, a small-engine repair company, a trucking company, and a flooring contractor avail themselves of the opportunity to reorganize while keeping their operations running, employees working, and payments to suppliers intact. H.R. 7730, the Bankruptcy Threshold Adjustments Act of 2026, raises the Subchapter V small-business debt limit to $7.5 million and the Chapter 13 consumer debt limit to $2.75 million, expanding access to critical protections that give business owners greater flexibility to restructure debt, maintain operations, retain employees, and continue serving their communities. These reforms strengthen Main Street businesses and help ensure that hardworking entrepreneurs have the opportunity to recover, rebuild, and succeed. BACKGROUND: This legislation passed the House of Representatives on September 16, 2026, and the Senate on September 28, 2026. It builds on Rep. Ben Cline’s previous work on this issue. As a freshman in the 2019 class, he became the first Republican member of his class to have legislation signed into law with the Small Business Reorganization Act, which established the Subchapter V reorganization process. ###