Congress raises SBA loan caps to help small businesses borrow bigger
S. 901 — LIONs Act of 2025 · Filed by Thom Tillis (R-NC) · 1 cosponsor · Introduced Mar 6, 2025 · Reported out
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What it does
This bill doubles the maximum loan amounts available under two federal small-business lending programs: SBA 7(a) loans (from $3.75M to $7.5M) and development company loans (from $5M to $10M). Small businesses seeking capital for expansion, equipment, or operations can now borrow larger amounts through these government-backed programs.
Why we flagged it
The bill's sole operative mechanism is to increase statutory caps on SBA-backed loan programs, directly expanding credit availability to small businesses. It is a straightforward lending-access measure with no hidden provisions or riders.
What the text implies
- Increased loan caps may raise aggregate credit risk in the SBA portfolio if default rates do not scale proportionally with loan size.
- Larger loans to individual borrowers could concentrate SBA exposure, reducing portfolio diversification.
The full analysis lists 3 implications of this text.
Who stands to gain
small businesses and entrepreneurs; SBA-participating lenders (banks, credit unions, non-bank lenders)