Pontiac Times

The U.S. House of Representatives has passed H.R. 2987, known as the Capping Excessive Awarding of SBLC Entrants (CEASE) Act. The legislation, sponsored by Rep. Rob Bresnahan (R-Pa.), aims to limit the number of for-profit Small Business Lending Companies (SBLCs) licensed by the Small Business Administration (SBA) to 16.

House Republican Conference Chairwoman Lisa McClain (R-Mich.) expressed her support for the bill, emphasizing its importance in protecting taxpayer dollars and maintaining a vital financial resource for small businesses. "We just passed legislation to protect taxpayer dollars and ensure that a vital financial lifeline for small businesses remains strong," McClain stated. She criticized Democrats for largely opposing the bill, saying, "Unfortunately, but not surprisingly, most Democrats voted against the bill."

Rep. Bresnahan highlighted the need for a reliable program centered around community banks and expressed concerns about potential fraud and abuse if non-bank SBLC licenses were not capped. "Small businesses deserve a reliable program that works for them," he said. Bresnahan noted his agreement with former President Trump on this issue and expressed pride in the passage of his legislation.

The bill now moves to the Senate, where further deliberation will take place before it can be sent to the White House.