HR2987-119

Passed House

To amend the Small Business Act to require a limit on the number of small business lending companies, and for other purposes.

119th Congress Introduced Jun 9, 2025

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

Small Business Financial Services SBA Lending

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
Model: codex-gpt-5 | Version: bill_summary_v2 | Source: rh
Nonprofit lending entities: ,
SBA program-integrity staff: ,
Incumbent SBA section 7 lenders: ,
Banks competing with nonbank SBLC entrants: ,
Existing for-profit small business lending companies: ,
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
Model: codex-gpt-5 | Version: bill_summary_v2 | Source: rh
SBA Administrator: ,
Nonbank commercial lenders: ,
Underserved small-business borrowers: ,
Small businesses seeking more SBA loan options: ,
Fintech lenders seeking SBA section 7 authority: ,
Prospective for-profit small business lending companies: ,

Legislative Progress

Passed House
Introduced Committee Passed
Jun 9, 2025

Received; read twice and referred to the Committee on Small …

Jun 9, 2025 (inferred)

Passed House (inferred from eh version)

May 21, 2025

Reported with an amendment, committed to the Committee of the …

Apr 24, 2025

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.

Financial Services
12 mentions across 3 clauses
+6 positive -6 negative

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

Nonprofits
3 mentions across 3 clauses
+3 positive

Nonprofit lending entities

Small Business
3 mentions across 3 clauses
-3 negative

Small businesses seeking SBA loans

Government
3 mentions across 3 clauses
-3 negative

SBA Administrator

2/2
sections analyzed
Full impact breakdown
House Roll #155

On Passage

CEASE Act

Passed
214 Yea 198 Nay 20 Not Voting
Jun 5, 2025
House Roll #154

On Motion to Recommit

CEASE Act

Failed
201 Yea 212 Nay 19 Not Voting
Jun 5, 2025

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
Small Business Financial Services SBA Lending
Actor Mappings
"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