To amend the Small Business Act to require a limit on the number of small business lending companies, and for other purposes.
Summary
What This Bill Does
The CEASE Act of 2025 limits how many for-profit small business lending companies can participate in the Small Business Administration's section 7 lending authority. It amends section 23 of the Small Business Act to require the SBA Administrator to ensure that no more than sixteen small business lending companies that are not nonprofit entities are authorized to make loans under section 7 at any time. The bill does not cap nonprofit lending entities, so nonprofit mission lenders would remain outside the numerical ceiling. The practical effect is to freeze or tightly limit entry by new for-profit SBLCs if the number of authorized for-profit SBLCs is already at or near sixteen.
Who Benefits and How
Existing for-profit small business lending companies, incumbent SBA section 7 lenders, nonprofit lending entities, SBA program-integrity staff, and banks competing with nonbank SBLC entrants benefit because the cap protects existing authorizations from rapid new for-profit entrant growth, leaves nonprofit lenders exempt, and gives SBA a clear statutory ceiling for the for-profit SBLC market.
Who Bears the Burden and How
Prospective for-profit small business lending companies, fintech lenders seeking SBA section 7 authority, nonbank commercial lenders, small businesses seeking more SBA loan options, underserved small-business borrowers, and the SBA Administrator bear burdens because the bill blocks or delays new for-profit SBLC authorizations once the cap is reached, may reduce lender competition, may narrow borrower choice, and requires SBA to monitor the number of authorized for-profit SBLCs at all times.
Key Provisions
- Amends section 23 of the Small Business Act to add a numerical limit on for-profit small business lending companies.
- Requires the SBA Administrator to keep the number of authorized for-profit SBLCs at sixteen or fewer.
- Applies the cap to companies authorized to make section 7 loans.
- Excludes nonprofit entities from the cap.
- Creates a statutory barrier to additional for-profit SBLC entrants once sixteen are authorized.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Amends section 23 of the Small Business Act to cap the number of for-profit small business lending companies authorized to make section 7 loans at sixteen at any time, while leaving nonprofit lending entities outside the cap.
Key Policy Areas
Small Business, Financial Services, SBA Lending
Primary Purpose
Amends section 23 of the Small Business Act to cap the number of for-profit small business lending companies authorized to make section 7 loans at sixteen at any time, while leaving nonprofit lending entities outside the cap.
Policy Domains
Substantive provisions
Identified Gains
- Existing for-profit small business lending companies
- Incumbent SBA section 7 lenders
- Nonprofit lending entities
- SBA program-integrity staff
- Banks competing with nonbank SBLC entrants
Identified Costs
- Prospective for-profit small business lending companies
- Fintech lenders seeking SBA section 7 authority
- Nonbank commercial lenders
- Small businesses seeking more SBA loan options
- Underserved small-business borrowers
- SBA Administrator
Legislative Progress
Passed HouseReceived; read twice and referred to the Committee on Small …
Passed House (inferred from eh version)
Reported with an amendment, committed to the Committee of the …
Mr. Bresnahan introduced the following bill; which was referred to …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Existing for-profit small business lending companies, Fintech lenders seeking SBA section 7 authority, Incumbent SBA section 7 lenders
Positive-direction: Existing for-profit small business lending companies, Incumbent SBA section 7 lenders
Negative-direction: Fintech lenders seeking SBA section 7 authority, Prospective for-profit small business lending companies
On Passage
CEASE Act
On Motion to Recommit
CEASE Act
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "sblc"
- → small business lending company
- "section_7"
- → Small Business Act lending authority administered by SBA
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology