BGOV Bill Analysis: H.R. 2987, Cap on Small Business Lenders

The Small Business Administration would have to cap at 16 the maximum number of certified small business lending companies eligible to make 7(a) loans under H.R. 2987.

The 7(a) loan program is the SBA’s primary loan program that awards eligible small businesses up to $5 million for real estate, equipment, and other expenses. The SBA is authorized to issue the loans through certified depository institutions, such as banks and credit unions, as well as certified nondepository small business lending companies.

The SBA doesn’t have the capabilities to act as the primary regulator for a significant number of SBLCs, which ...