Senators Introduce a Bill to Prevent SBA from 7(a) Direct Lending
March 27, 2024
Delaney Sexton
Contributing Editor
Senators Introduce a Bill to Prevent SBA from 7(a) Direct Lending
“Fraud and inefficiency characterize the Small Business Administration’s history in direct lending. The government shouldn’t crowd out private lenders that are already doing a good job getting funds to the small businesses that need them. I’m proud to partner with Sen. Scott to stop the SBA from replacing private lenders and those in our communities with Washington bureaucrats,” says Senator Kennedy.
Senator Kennedy and Senator Scott introduced the Protecting Access to Credit for Small Businesses Act. The bill prohibits the SBA from acting as a direct lender for the 7(a) loan program. Eleven other senators cosponsored the legislation.
This new bill came after President Biden’s Fiscal Year 2025 budget request included a proposal to allow the SBA to make direct loans under the 7(a) loan program.