WASHINGTON--The House is preparing to vote on a bill to cap the number of Small Business Lending Companies (SBLCs). America’s Credit Unions wrote to House leaders Wednesday urging their support for the Capping Excessive Awarding of SBLC Entrants (CEASE) Act (H.R. 2987).
Introduced by Rep. Rob Bresnahan (R-PA), H.R. 2987 would codify a cap on the existing number of SBLC licenses at 16. This encompasses the original SBLCs as well as additional SBLCs licensed in 2024 during the previous administration’s rule change. The bill also restores proper oversight capabilities to the Small Business Administration, while ensuring that credit unions and other federally regulated lenders remain a cornerstone of 7(a) lending.
“Credit unions are ready and willing to provide the capital to help small businesses grow. Improving access for the SBA’s credit union lending partners will help limit long term risk and ultimately benefit SBA lending programs,” wrote America’s Credit Unions President/CEO Jim Nussle. “Advancing the CEASE Act will help ensure a proper limitation on SBLC involvement.”
America’s Credit Unions said it also encourages the SBA to consider awarding SBLC licenses to credit union service organizations (CUSOs), as their investments are already regulated, capped and monitored under the Federal Credit Union Act. The letter points out that in contrast, most non-bank fintech lenders hold limited state licenses and do not face ongoing prudential supervision.
The House is expected to bring the CEASE Act to the floor this week, ACU added.