Inc - A new reckoning for small business

The worst of the pandemic may be over, but many small businesses are headed for a reckoning.

As relief efforts like the Paycheck Protection Program wind down, and state and federal protections such as eviction moratoriums begin to lapse, companies that may have been limping along or on the edge could soon topple. "Expect a total avalanche of bankruptcies soon," says Bob Keach, head of Bernstein Shur, a Portland, Maine-based law firm that focuses on business restructuring and insolvency.

It sounds counterintuitive, but bankruptcy filings tend to rise during the early stage of economic recoveries. Lenders have spent months allowing borrowers to delay payments, and now that the economy is facing an upswing, many are ready to collect--especially since they now can avoid the PR boondoggle of forcing a company to liquidate during a crisis.

Read our story to learn what experts predict for the coming months, and what you can do about the coming debts that your business may be unable to pay.