HR 2987: CEASE Act of 2025

HR 2987 in plain English: This bill is early in the legislative process and detailed text is not yet available. Sponsor: Rep. Bresnahan, Robert [R-PA-8] (R) · Status: Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.

Stated purpose

The bill aims to cap the number of for-profit small business lending companies authorized to make SBA 7(a) loans at no more than 16 at any time.

Arguments supporters make

• Limiting the number of authorized lenders helps the SBA maintain strong oversight and quality control over companies making government-backed loans, reducing risk to taxpayers.
• A stable, smaller group of experienced lenders may provide more consistent and reliable service to small businesses than a rapidly expanding and less-vetted pool.
• Unchecked growth in the number of authorized lenders could strain SBA resources and oversight capacity, potentially leading to fraud or poor lending practices.

Arguments opponents make

• Capping lenders at 16 restricts competition, which could mean fewer choices, higher fees, and worse loan terms for small business owners who need affordable financing.
• Blocking new lenders from entering the program could slow access to capital for small businesses in underserved or rural areas that existing lenders may not prioritize.
• A fixed numerical cap set by Congress may be too rigid, preventing the SBA from responding flexibly to growing demand or changing conditions in the small business lending market.

Tradeoffs

Tighter oversight and stability in the 7(a) lending program come at the cost of reduced competition and potentially limited access to capital for small businesses; the bill prioritizes control over the number of authorized lenders rather than maximizing the availability of lenders in the marketplace.

Current status in Congress: Passed House.

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