CEASE Act
Description
This bill would limit the number of for-profit small business lending companies authorized to make 7(a) loans to a maximum of 16.
Summary
What it does
This bill would establish a limit on the number of for-profit small business lending companies permitted to participate in the 7(a) loan program. Specifically, the legislation proposes to cap the total number of these authorized lenders at 16 at any given time.
Who is affected
This bill directly affects for-profit small business lending companies (SBLCs) that seek authorization to provide 7(a) loans. It also impacts the Small Business Administration or relevant regulatory bodies responsible for overseeing the number of authorized SBLC entrants.
Key provisions
- Cap on for-profit small business lending companies. The bill establishes a limit of 16 for-profit small business lending companies authorized to participate in the 7(a) loan program at any given time.
Fiscal impact
Not applicable: No CBO cost estimate available
Effective dates
Not applicable: Official Summary does not address effective dates
Relationship to existing law
This bill modifies the administration of the Small Business Administration's 7(a) loan program by establishing a statutory cap on the number of for-profit small business lending companies authorized to participate in the program.
Stated purpose
The bill aims to restrict the number of for-profit small business lending companies authorized to participate in the 7(a) loan program by establishing a permanent cap of 16 such entities at any given time.