# President Signs Small-Business Debt Limit Act

President Donald Trump signed H.R. 7730, the Bankruptcy Threshold Adjustments Act of 2026, on November 12, 2026. The law raises the Subchapter V small-business debt limit to $7.5 million and the Chapter 13 consumer debt limit to $2.75 million. Eligible small-business government contractors facing financial distress may have greater flexibility to restructure debt while continuing operations and retaining employees; the law does not itself change federal contracting requirements or awards.

- Small-business contractors may want to assess whether the higher Subchapter V limit affects their restructuring options; eligibility depends on the circumstances of each business.
- For procurement professionals and prime contractors, the change is relevant to the potential continuity of operations and employment at financially distressed small-business suppliers and subcontractors.
- The Chapter 13 limit concerns consumer debt; the signal does not identify a direct procurement effect from that provision.

**Jurisdictions:** federal
**Topics:** Policy
**Published:** November 12, 2026

### Government Entities
- U.S. House of Representatives (House)

### Key Quotes
> 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.
> — Ben Cline, U.S. Representative

### Sources
- [
	President Trump Signs Cline Legislation to Support Small Businesses | U.S. Representative Ben Cline
](https://cline.house.gov/news/documentsingle.aspx?DocumentID=2709) - Cline House