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Small Business Center

Small Business Debtor Reorganization Filings Climb

October 11, 2023

The Wall Street Journal reports that rising interest rates have led to a surge in small business bankruptcies. In the first nine months of 2023, nearly 1,500 businesses filed under Subchapter V, Small Business Debtor Reorganization, of the Bankruptcy Code. That's nearly as many as in all of 2022. Defaults and delinquencies on small business loans also have risen, exceeding pre-pandemic levels.

To read more about factors contributing to this rise in bankruptcies and what it might mean for the economy, read WSJ’s full story here.

By Rebecca Meiser

Contributor, Commerce + Communities Today and Small Business Center

Small Business Center

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