CEASE Act of 2025
- Bill Number
- H.R. 2987
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Commerce
- Status
- Passed House
- Latest Action
- 2025-06-09: Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
- Last Updated
- 2026-07-11T01:58:20Z
AI-Generated Summary
Summary of H.R. 2987: Capping Excessive Awarding of SBLC Entrants Act of 2025 (CEASE Act of 2025)
Purpose
This legislation aims to regulate the growth of small business lending companies (SBLCs) by imposing a numerical limit on non-nonprofit entities authorized to provide loans through the Small Business Administration (SBA). It seeks to cap the number of such companies to prevent excessive expansion in the program, focusing on maintaining a controlled number of for-profit lenders in the SBA's loan ecosystem.
Key Provisions
- Cap on SBLCs: The SBA Administrator must ensure that no more than 16 SBLCs that are not nonprofit organizations are authorized to make loans under Section 7 of the Small Business Act (which covers the SBA's primary 7(a) loan guarantee program for small businesses) at any given time.
- Amendment to Existing Law: Adds a new subsection (k) to Section 23 of the Small Business Act (15 U.S.C. 650), which governs SBLCs as specialized non-bank lenders regulated by the SBA.
- Scope: The limit applies only to for-profit SBLCs; nonprofit entities are exempt from this cap.
Significant Changes to Existing Law
- Prior to this act, there was no statutory limit on the number of SBLCs, allowing the SBA to authorize as many as needed based on demand and regulatory standards.
- This introduces a hard cap of 16 for non-nonprofits, shifting from an open-ended authorization process to a fixed quota, which could require the SBA to deny new applications once the limit is reached.
Potential Impacts
- On Government Agencies: The SBA may face administrative challenges in enforcing the cap, such as reviewing and potentially rejecting new SBLC applications, which could streamline oversight but limit program flexibility.
- On Citizens and Small Businesses: Small business owners seeking loans through the 7(a) program might experience reduced options if fewer for-profit SBLCs are available, potentially slowing loan access in high-demand areas; however, nonprofits and other SBA lenders (like banks) remain unaffected.
- On International Relations: No direct impacts, as this is a domestic regulatory measure focused on U.S. small business lending.
Main Stakeholders Affected
- Small Business Administration (SBA): Responsible for implementing and enforcing the cap, affecting its licensing and regulatory workload.
- For-Profit SBLCs: Existing companies (up to 16) benefit from protection against new entrants, but aspiring or new for-profit lenders may be barred from participation.
- Nonprofit SBLCs: Unaffected by the cap, potentially gaining a competitive edge in the lending market.
- Small Businesses: Primary borrowers under the 7(a) program, who could see changes in lender availability and competition for loans.
- Congress and Oversight Committees: The bill was referred to the Senate Committee on Small Business and Entrepreneurship, indicating ongoing congressional interest in SBA program management.
Notable Legal, Constitutional, or Political Implications
- Legal: The cap could lead to legal challenges from denied applicants arguing arbitrary restrictions on business entry, though it aligns with Congress's authority to regulate federal loan programs under the Commerce Clause. It may require SBA rulemaking to define enforcement details, such as how to handle the existing number of SBLCs.
- Constitutional: No apparent conflicts with core rights like equal protection, but it raises questions about fair access to federal programs without infringing on free enterprise.
- Political: Positions the legislation as a measure to curb potential over-expansion and ensure program sustainability, possibly appealing to fiscal conservatives; however, it might draw criticism from pro-business groups for limiting market competition in small business support. The bill's passage in the House and Senate referral suggest bipartisan or targeted support for SBA reforms.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Bresnahan, Robert [R-PA-8]
Recent Actions
- 2025-06-09: Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
- 2025-06-05: Motion to reconsider laid on the table Agreed to without objection.
- 2025-06-05: On passage Passed by the Yeas and Nays: 214 - 198 (Roll no. 155). (text of amendment in the nature of a substitute: CR H2489) (Roll call 155)
- 2025-06-05: Passed/agreed to in House: On passage Passed by the Yeas and Nays: 214 - 198 (Roll no. 155). (text of amendment in the nature of a substitute: CR H2489) (Roll call 155)
- 2025-06-05: On motion to recommit Failed by the Yeas and Nays: 201 - 212 (Roll no. 154). (Roll call 154)
- 2025-06-05: Considered as unfinished business. (consideration: CR H2493-2494)
- 2025-06-05: POSTPONED PROCEEDINGS - At the conclusion of debate on H.R. 2987, the Chair put the question on motion to recommit and by voice vote, announced that the noes had prevailed. Ms. Velazquez demanded the yeas and nays and the Chair postponed further proceedings until a time to be announced.
- 2025-06-05: The previous question on the motion to recommit was ordered pursuant to clause 2(b) of rule XIX.
- 2025-06-05: Ms. Velazquez moved to recommit to the Committee on Small Business. (text: CR H2491)
- 2025-06-05: The previous question was ordered pursuant to the rule.
- 2025-06-05: DEBATE - The House proceeded with one hour of debate on H.R. 2987.
- 2025-06-05: Rule provides for consideration of H.R. 2483, H.R. 2931, H.R. 2966 and H.R. 2987. The resolution provides for consideration of H.R. 2483 under a structured rule and for consideration of H.R. 2931, H.R. 2966, and H.R. 2987 under a closed rule. The resolution provides for one hour of debate and one motion to recommit on each bill.
- 2025-06-05: Considered under the provisions of rule H. Res. 458. (consideration: CR H2489-2491)
- 2025-06-04: Rule H. Res. 458 passed House.
- 2025-06-03: Rules Committee Resolution H. Res. 458 Reported to House. Rule provides for consideration of H.R. 2483, H.R. 2931, H.R. 2966 and H.R. 2987. The resolution provides for consideration of H.R. 2483 under a structured rule and for consideration of H.R. 2931, H.R. 2966, and H.R. 2987 under a closed rule. The resolution provides for one hour of debate and one motion to recommit on each bill.
Bill Versions
- Capping Excessive Awarding of SBLC Entrants Act of 2025 — issued 2025-06-05 — PDF (4 pages)
- Capping Excessive Awarding of SBLC Entrants Act — issued 2025-04-24 — PDF (2 pages)
- Capping Excessive Awarding of SBLC Entrants Act of 2025 — issued 2025-06-09 — PDF (2 pages)
- Capping Excessive Awarding of SBLC Entrants Act of 2025 — issued 2025-05-21 — PDF (4 pages)