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Prohibiting Direct SBA 7(a) Loans to Small Businesses

This bill aims to change how small business loans are issued. If passed, the Small Business Administration (SBA) would no longer be able to directly provide new loans under its 7(a) program. This means businesses would need to seek these loans through banks and other financial institutions, with the SBA only guaranteeing them.
Key points
The Small Business Administration (SBA) will be prohibited from directly making new 7(a) loans.
Businesses will need to apply for 7(a) loans through banks, with the SBA providing guarantees.
The SBA will continue to service 7(a) direct loans made before this bill becomes law.
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Additional Information
Print number: 117_HR_6037
Sponsor: Rep. Luetkemeyer, Blaine [R-MO-3]
Process start date: 2021-11-18
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

To prohibit the Administrator of the Small Business Administration from directly making loans under the 7(a) loan program, and for other purposes.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_6037.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-11-18.

What are the main provisions?

Key points include:

  • The Small Business Administration (SBA) will be prohibited from directly making new 7(a) loans.
  • Businesses will need to apply for 7(a) loans through banks, with the SBA providing guarantees.
  • The SBA will continue to service 7(a) direct loans made before this bill becomes law.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Luetkemeyer, Blaine [R-MO-3].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Small Business.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

CATEGORIES

Economy