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Prohibiting Direct SBA 7(a) Loans for Small Businesses

This Act prohibits the Small Business Administration (SBA) from directly issuing loans under the crucial 7(a) loan program. This means small businesses must rely solely on banks and other private financial institutions, which are guaranteed by the SBA, to access this funding. The change aims to maintain the traditional model where the government guarantees, but does not directly provide, credit, potentially affecting the availability and terms of financing for entrepreneurs.
Key points
The SBA is barred from directly making new loans under the 7(a) program for small businesses.
Small businesses must now seek 7(a) loans exclusively through private lenders (banks) whose loans are guaranteed by the SBA.
The SBA will continue to service all direct 7(a) loans that were made before the enactment date of this Act.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_2486
Sponsor: Sen. Scott, Tim [R-SC]
Process start date: 2025-07-28
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Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Protecting Access to Credit for Small Businesses Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_2486.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-07-28.

What are the main provisions?

Key points include:

  • The SBA is barred from directly making new loans under the 7(a) program for small businesses.
  • Small businesses must now seek 7(a) loans exclusively through private lenders (banks) whose loans are guaranteed by the SBA.
  • The SBA will continue to service all direct 7(a) loans that were made before the enactment date of this Act.
What is the specific legal status?

The current status is Introduced.

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 Sen. Scott, Tim [R-SC].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-31.

CATEGORIES

Economy