Bill > S06447

This bill establishes the Save Merchants and Retail Tenants (SMART) Act, which creates a temporary state assistance fund to provide legal counsel for small businesses filing Chapter 11 bankruptcy in New York. The fund specifically targets businesses that were adversely affected by COVID-19 or related public health restrictions and are eligible under the federal Small Business Reorganization Act as amended by the CARES Act. The New York Office of Court Administration will serve as the administrator, responsible for implementing the program by October 1, 2025, and ensuring high-quality legal representation for eligible businesses. Covered businesses can receive legal services for their bankruptcy proceedings, with access to counsel terminating upon case dismissal, at the recommendation of the U.S. trustee or bankruptcy judge, and excluding appeals. The state will establish a dedicated fund to support these legal services, with the administrator determining the necessary funding in consultation with the budget director. The legal services will be provided by designated legal services providers and aim to offer individualized assistance through consultations or ongoing representation. The program is set to expire on March 27, 2026, providing a time-limited support mechanism for businesses recovering from pandemic-related economic challenges.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S6447