HB 2987, the CEASE Act of 2025, would amend the Small Business Act to cap the number of non-profit small business lending companies (SBLCs) authorized to make loans under section 7 at 16 nationwide. In practical terms, the bill directs the SBA Administrator to ensure that no more than 16 for-profit SBLC entities are approved to participate in the program at any given time.
The measure is a structural change to the SBA lending framework rather than a direct change to borrower eligibility or loan terms. By limiting the number of SBLC entrants, it would affect which lenders can originate SBA-backed loans and could influence competition, market access, and the pace at which new lenders enter the program. The bill was passed by the House and then received in the Senate, where it was referred to the Committee on Small Business and Entrepreneurship.
Impact
The bill would amend section 23 of the Small Business Act, adding a new statutory limit on the number of non-profit SBLCs authorized to make section 7 loans. This would constrain SBA administrative discretion and create a hard cap of 16 qualifying lending companies, affecting lenders seeking SBA authorization and potentially altering the composition of the SBA lending market. It does not directly change the underlying loan guarantee program, but it would affect who may participate in it.
Sentiment
The House vote suggests the bill had enough support to pass, but the recorded votes also indicate some division. The motion to recommit failed, and final passage succeeded by a relatively narrow margin, reflecting a mixed but ultimately favorable sentiment in the House. No committee transcript is available, so the broader debate is inferred primarily from the voting pattern and the bill’s movement to the Senate.
Contention
The main point of contention appears to be whether Congress should impose a fixed cap on the number of SBLCs. Supporters likely view the limit as a way to control program growth and maintain oversight, while opponents may see it as unnecessarily restricting competition and limiting access for new lenders. The close House votes indicate disagreement over the policy approach, especially regarding the balance between market entry and regulatory control.
Related
Providing for consideration of the bill (H.R. 2483) to reauthorize certain programs that provide for opioid use disorder prevention, treatment, and recovery, and for other purposes; providing for consideration of the bill (H.R. 2931) to direct the Administrator of the Small Business Administration to relocate certain offices of the Small Business Administration in sanctuary jurisdictions, and for other purposes; providing for consideration of the bill (H.R. 2966) to require the Administrator of the Small Business Administration to require an applicant for certain loans of the Administration to provide certain citizenship status documentation, and for other purposes; and providing for consideration of the bill (H.R. 2987) to amend the Small Business Act to require a limit on the number of small business lending companies, and for other purposes.
Providing for consideration of the bill (H.R. 2483) to reauthorize certain programs that provide for opioid use disorder prevention, treatment, and recovery, and for other purposes; providing for consideration of the bill (H.R. 2931) to direct the Administrator of the Small Business Administration to relocate certain offices of the Small Business Administration in sanctuary jurisdictions, and for other purposes; providing for consideration of the bill (H.R. 2966) to require the Administrator of the Small Business Administration to require an applicant for certain loans of the Administration to provide certain citizenship status documentation, and for other purposes; and providing for consideration of the bill (H.R. 2987) to amend the Small Business Act to require a limit on the number of small business lending companies, and for other purposes.