This bill would stop the Administrator of the Small Business Administration (SBA) from directly making loans under section 7(a) of the Small Business Act. It also says the SBA must continue to service any direct 7(a) loans that were made before the bill becomes law. The bill was introduced in the Senate on July 28, 2025, and was referred to the Committee on Small Business and Entrepreneurship.
If this bill becomes law, the SBA Administrator could not directly issue new 7(a) loans. The SBA would still handle (service) any direct 7(a) loans made before the law took effect. The bill text and metadata do not say what would replace direct Administrator lending or how other lenders would be affected.
No publicly available information on costs or budgetary effects is included in the bill text or its metadata.
No publicly available information in the bill text or metadata provides proponents' stated arguments or rationale. The bill was introduced by Senators Tim Scott, Ted Budd, John Barrasso, Cindy Hyde-Smith, James Risch, Steve Daines, Rick Scott, Kevin Cramer, and Mike Crapo.
No publicly available information on opponents' positions or arguments is included in the bill text or metadata.