Protecting Access to Credit for Small Businesses Act

The Protecting Access to Credit for Small Businesses Act would forbid the Small Business Administration (SBA) Administrator from directly making loans under the 7(a) loan program. In practice, this means the SBA would no longer issue direct loans under 7(a); instead, loan activity would occur through private lenders (with the SBA continuing to back the program in other ways, such as guarantees). The bill does preserve any 7(a) direct loans that were already made before the act’s enactment by requiring the SBA to service those existing loans. The intent appears to be a shift away from direct SBA lending toward leveraging private sector lenders, while maintaining support for existing borrowers with current direct loans.