Protecting Access to Credit for Small Businesses Act

This bill would stop the Small Business Administration (SBA) from directly making new loans in its 7(a) program. If it becomes law, the SBA could not issue new 7(a) loans itself. However, the SBA would keep handling any 7(a) direct loans that were made before the law takes effect, so current borrowers would not be left without service .

In practical terms, small businesses looking for a 7(a) loan would need to go through other lenders instead of getting a direct loan from the SBA. Existing SBA direct 7(a) borrowers would continue making payments and getting support as before .

• Key points:
  • Who is affected: Small business borrowers, the SBA, and lenders that offer 7(a) loans .
  • What changes: No new SBA direct 7(a) loans; existing direct 7(a) loans will still be serviced by the SBA .
  • When: Starts on the date it becomes law; applies to loans made after that date .