This bill prohibits the Small Business Administration (SBA) from directly lending money to small businesses under its 7(a) loan program going forward. The 7(a) program is one of the SBA's main tools for helping small businesses access capital by guaranteeing loans made through banks and other lenders. Under this legislation, the SBA would no longer be able to make loans directly itself, though it would still be required to service and manage any 7(a) loans it made before the bill becomes law. The bill effectively shifts all future lending activity to private lenders rather than having the SBA act as a direct lender. This change would primarily affect small business owners seeking SBA-backed loans, as the program would operate exclusively through traditional banks and lending institutions instead of the government providing direct financing.
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