Is Your Business Eligible for Restructuring?

Take the first step toward financial recovery by confirming your eligibility for the Small Business Restructuring Process.

If your business is struggling with debt, understanding whether you qualify for the Small Business Restructuring Process (SBRP) is the first step toward financial recovery. The SBRP was designed to help small businesses manage their debts while continuing to trade, offering a practical alternative to liquidation or voluntary administration.

By meeting the government’s eligibility criteria, you can start a process that will ease your financial burden and get your business back on track. Let us guide you through the steps, so you can focus on what matters most—running your business.

Ready to find out if your business qualifies? Take the 30-second qualification test now and take the first step toward financial recovery!

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Key Eligibility Criteria

To qualify for the Small Business Restructuring Process (SBRP), your business needs to meet specific criteria set out by the Australian Government. These requirements ensure that the process is accessible to businesses in genuine financial distress, offering a clear pathway to resolve debt while continuing to trade. Here’s what you need to know:

Liabilities Under $1 Million

Your business must have total debts and liabilities of less than $1 million to qualify for the SBRP. This includes both secured and unsecured debts, with a focus on keeping the process accessible to small businesses.

Up-to-Date Employee Entitlements

Any outstanding employee entitlements, such as wages and superannuation, must be paid before entering the restructuring process. Ensuring that your workforce is taken care of is a crucial part of the eligibility criteria.

Current Tax Lodgements

While tax debts do not need to be fully paid off, your business must be up to date with all required tax lodgements (such as BAS and tax returns). This ensures compliance and transparency in the restructuring process.

Not in Liquidation or External Administration

Your business must not currently be under external administration, such as liquidation or voluntary administration, to be eligible for SBRP. This process is designed to help businesses before they reach that stage.

No Previous Use of SBRP or Simplified Liquidation

Neither your business nor its directors can have used the Small Business Restructuring Process or the simplified liquidation process within the last 7 years. This rule ensures the process is used responsibly and fairly.

Why Meeting These Criteria is Important

Understanding and meeting the eligibility criteria for the Small Business Restructuring Process (SBRP) is crucial for your business. These criteria are designed to ensure that businesses in genuine financial distress have access to an effective, streamlined solution that allows them to regain control while restructuring their debts.

By meeting the government’s eligibility requirements, your business can:

Retain control: Unlike liquidation or voluntary administration, the SBRP allows business owners to remain in control of their company during the restructuring process.
Access tailored debt solutions: The eligibility criteria help ensure that businesses who qualify can work with professionals to create a custom plan for reducing debt and managing finances.
Avoid liquidation: Meeting the criteria gives your business a chance to recover and continue trading without the severe consequences of liquidation, which often results in the loss of assets and permanent closure.
Gain time to breathe: Eligible businesses are given time to restructure debts and focus on long-term recovery, providing relief from immediate financial pressure.

Meeting these criteria is the first step toward financial relief. If your business qualifies, you open the door to a structured process that can help you recover and rebuild without the drastic impact of more severe insolvency measures.

What to Do if You’re Eligible

If your business meets the eligibility criteria for the Small Business Restructuring Process (SBRP), you’re already on the path to solving your debt problems. Here’s what comes next...

Complete the Qualification Test

If you haven’t already, take our quick qualification test to confirm that your business qualifies for the SBRP. This will give us the information we need to help guide you through the process and develop the best restructuring plan for your situation.

Submit Your Restructuring Plan

Your restructuring plan will be presented to your creditors, who will review the proposal and vote on its approval. If more than 50% of your creditors (by value) accept the plan, the process will move forward, and you can begin implementing the solution.

Begin the Restructuring Process

Once eligibility is confirmed, you’ll work with a licensed practitioner to develop a customised restructuring plan that suits your business’s needs. This plan will outline how your debts will be managed, giving you and your creditors a clear path forward.

Continue Trading and Focus on Recovery

With the restructuring plan in place, you’ll remain in control of your business while working toward long-term recovery. You can continue trading, confident that your financial situation is being handled, allowing you to focus on rebuilding and growing your business.

Begin the Restructuring Process

What If You Don’t Meet the Criteria?

If your business doesn’t meet the eligibility criteria for the Small Business Restructuring Process (SBRP), don’t worry—there are still options available to help you manage your financial difficulties. Here’s what you can do:

Explore Alternative Debt Solutions

Even if your business isn’t eligible for the SBRP, there are other pathways available to restructure your debt or manage insolvency. Options such as Voluntary Administration or Creditors' Voluntary Liquidation may provide you with a structured approach to dealing with debt and resolving your financial challenges.

Seek Professional Advice

It’s essential to consult with a financial expert or insolvency professional to explore the best options for your situation. They can help you understand the alternatives available and guide you through the necessary steps to protect your business and assets.

Act Quickly

If your business is facing severe financial distress, taking action early can often prevent more drastic outcomes. Delaying action may limit the options available to you, so it’s important to address the situation as soon as possible.

Contact Us for Support

Even if your business doesn’t qualify for the SBRP, we’re here to help. Our team can guide you through alternative options and connect you with the right professionals to get your business back on track.

Take Control of Your Business’s Future Today

Your business’s financial health is too important to leave to chance. With the Small Business Restructuring Process (SBRP), you can take proactive steps to resolve your debts and regain control of your company—without resorting to liquidation or administration.

Whether you're unsure about eligibility or need guidance on how to get started, we’re here to help you take the first step.

Ready to Restructure?

Don’t wait until it’s too late. Find out if your business qualifies for the Small Business Restructuring Process. Take our quick and easy qualification test and get started on the path to financial recovery.

Start Your Qualification Test Now

Have Questions? Speak to an Expert

Need advice on your next steps? Contact our team for a confidential consultation and learn how the Small Business Restructuring Process can help your business turn things around.

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