Capping Excessive Awarding of Sblc Entrants Act of 2025
Floor Speech
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Mr. WILLIAMS of Texas. Mr. Speaker, pursuant to House Resolution 458, I call up 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, and ask for its immediate consideration in the House.
The Clerk read the title of the bill.
Mr. Speaker, I rise today in support of H.R. 2987, the CEASE Act, introduced by Representative Bresnahan.
This bill is simply a reversal of an irresponsible change made by the Biden administration's SBA, which raised concerns on both sides of the aisle.
Unlike a traditional community bank, small business lending companies, or SBLCs, are regulated by the SBA. Historically, the SBA recognized that they had finite resources to conduct oversight of the SBLCs, reinforcing a need for a cap on the number of SBLCs.
Despite this, in 2023, the Biden administration lifted the 40-year moratorium on licensing the SBLCs to participate in its flagship 7(a) program, a government-backed lending program.
The SBA heard concerns from Members from both Chambers and both sides of the aisle. Even the ranking member, Ms. Velazquez, said earlier this week during the Rules Committee hearing that she was one of the first to raise questions when the SBA lifted the licensing moratorium.
Biden's SBA hid behind promises of lender oversight and stronger borrower protection yet still awarded a license to an unqualified entity. This entity, which was seeking to sell its business when it was awarded a license, ultimately surrendered its license before it could even make a 7(a) loan.
This legislation puts the guardrails back and restores integrity to the 7(a) program, ensuring taxpayer dollars are safe. I am confident that the 16 SBLCs can and will be overseen effectively under Administrator Loeffler's leadership.
Mr. Speaker, I urge all of my colleagues to support this bill, and I reserve the balance of my time.
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