Bill > S2486

This bill, titled the "Protecting Access to Credit for Small Businesses Act," aims to prohibit the Administrator of the Small Business Administration (SBA) from directly making loans under the 7(a) loan program. The 7(a) loan program is a key SBA initiative that provides financial support to small businesses by guaranteeing loans made by private lenders. Currently, the SBA can both guarantee loans and, in some cases, directly make loans to businesses. Under this proposed legislation, the SBA would no longer be able to issue direct loans, though they would continue to service any direct loans that were made prior to the bill's enactment. The bill effectively limits the SBA's role to loan guarantees and loan servicing, removing their ability to act as a direct lender to small businesses. By restricting direct lending, the bill appears intended to encourage private sector lending and reduce direct government involvement in small business financing.

Business and Industry

https://www.congress.gov/bill/119th-congress/senate-bill/2486/all-info