{"database": "press", "table": "releases", "rows": [["https://www.scott.senate.gov/media-center/press-releases/senator-scott-colleagues-introduce-bill-to-stop-government-overreach-in-small-business-lending/", "Senator Scott, Colleagues Introduce Bill to Stop Government Overreach in Small Business Lending", "2025-07-29", "2025", "2025-07", "Republican", "Senate", "SC", "Tim Scott", "S001184", "www.scott.senate.gov", "timscott", "https://www.scott.senate.gov/media-center/press-releases/jsf/jet-engine:press-list", "scraper", "WASHINGTON \u2014 Today, U.S. Senator Tim Scott (R-S.C.) reintroduced the Protecting Access to Credit for Small Businesses Act to protect community banks and credit unions from competing with the federal government by prohibiting a Biden-era rule that would allow the Small Business Administration (SBA) to directly making loans.\n\nSens. John Barrasso (R-Wyo.), Ted Budd (R-N.C.), Kevin Cramer (R-N.D.), Mike Crapo (R-Idaho), Steve Daines (R-Mont.), Cindy Hyde-Smith (R-Miss.), James Risch (R-Idaho), and Rick Scott (R-Fla.) are co-sponsoring this bill.\n\n\u201cThe SBA has a poor track record as a direct lender, especially compared to local banks that know the communities they serve,\u201d said Sen. Tim Scott. \u201cAllowing the SBA to directly offer loans is not just another example of government overreach, it would also hurt Main Street by creating unnecessary competition with community banks and credit unions. The private sector has a much stronger record of managing loans effectively, and the last thing we need is big government disrupting a system that local businesses rely on.\u201d\n\nSen. Barrasso said, \u201cWyoming\u2019s community banks and credit unions know our local small businesses better than unelected, unaccountable Washington bureaucrats. The Biden administration tried to push direct government lending to undermine these partnerships. The Protecting Access to Credit for Small Businesses Act prioritizes local lenders and ensures Wyoming small businesses get the credit they need.\u201d\n\n\u201cTime and again, the federal government has shown it is neither efficient nor effective when it comes to delivering direct loan support to small businesses. Community banks and credit unions, not Washington bureaucrats, understand the needs of the businesses they serve. It\u2019s time we stop sidelining them. I am proud to join Senator Scott and my colleagues to put power back in the hands of local institutions that invest in our communities, rather than forcing them to compete with the federal government,\u201d said Sen. Budd.\n\nSen. Cramer said, \u201cThe Biden proposal to allow the SBA to directly make loans under the 7(a) lending program undercut the private sector. Protecting access to credit for small businesses is critical and we must prevent the federal government\u2019s blatant attempt to control the direct lending space.\u201d\n\n\u201cInserting the heavy hand of the federal government into a role community banks and credit unions already serve is redundant and wasteful,\u201d said Sen. Crapo. \u201cWe can rely on our private institutions to help small businesses access capital without putting them in direct competition with the federal government.\u201d\n\n\u201cSmall businesses make up 99 percent of all businesses in Montana and the community lenders who are vital to facilitating the flow of capital to our small businesses should not be forced to compete directly with the federal government. I\u2019m glad to join my colleagues to introduce this bill, which will unleash the full potential of the private markets and remove the improper role of the federal government in decisions best made between a bank and the businesses they serve,\u201d said Sen. Daines.\n\nSen. Hyde-Smith said, \u201cMississippi\u2019s small businesses play a vital role in our state\u2019s economy, and they thrive when local lenders, who understand their communities, are leading the way. With this bill, we want to return the SBA to its traditional role as a guarantor rather than a direct lender, which will allow our private, local financial institutions to continue meeting the needs of our local entrepreneurs.\u201d\n\n\u201cAccess to capital remains one of the biggest challenges small businesses face,\u201d said Sen. Risch. \u201cThe Protecting Access to Credit for Small Businesses Act stops the federal government from getting involved in a process private lenders have handled well for years, allowing small businesses to thrive without bureaucratic roadblocks.\u201d\n\n\u201cSmall businesses are the backbone of our economy. I\u2019ve run businesses small and large, and I know the pressure these owners face having employees rely on them to make payroll so they can support their families. When they look to their federal government for support, they shouldn\u2019t be subject to big government overreach, nor left without because of fraud and waste allowed by government inefficiencies,\u201d said Sen. Rick Scott. \u201cThe Protecting Access to Credit for Small Businesses Act ensures small businesses can continue to access federal resources they need through trusted, community-based lenders that best serve their needs without more big government getting in the way.\u201d\n\nRob Nichols, President and CEO, American Bankers Association said, \u201cIn partnership with banks of all sizes, the SBA\u2019s 7(a) lending program continues to deliver critical financing to small businesses across the country. Creating a direct lending program within the SBA would duplicate and crowd out these existing private-sector efforts and threaten access to much-needed capital, and we appreciate Chairman Scott\u2019s leadership in introducing this important bill to prevent these potential harms. We look forward to working with him to strengthen the existing 7(a) framework and ensure that private lenders can continue to perform their vital role in supporting our nation\u2019s small businesses.\u201d\n\n\u201cFinancial inclusion and access to capital for entrepreneurs are critical in ensuring the growth and development of vibrant small businesses. The SBA government guaranteed lending programs, like 7(a), demonstrate successful public-private partnerships that work as borrowers can obtain loans from credit unions that they know and trust. Direct lending from the SBA would invalidate this partnership, driving up program costs and disincentivizing 7(a) Loan Program authorization within financial institutions. America\u2019s Credit Unions is proud to protect consumer relationships by supporting Senator Tim Scott\u2019s Protecting Access to Credit for Small Businesses Act, which seeks to prohibit the SBA from directly making loans under the 7(a) program,\u201d said Jim Nussle, President and CEO, America\u2019s Credit Unions.\n\n\u201cBPI supports this commonsense legislation that preserves the important relationship between small businesses and their banks and prevents bureaucratic inefficiency from interfering. Small businesses across the country deserve the private sector\u2019s expertise and customer service when it comes to accessing affordable credit in order to grow,\u201d said Erik Rust, Senior Vice President and Head of Government Affairs, Bank Policy Institute.\n\n\u201cThe Carolinas Credit Union League fully supports Chairman Scott\u2019s Protecting Access to Credit for Small Businesses Act,\u201d said Dan Schline, President and CEO, Carolinas Credit Union League. \u201cWe greatly appreciate his leadership in ensuring small businesses can continue to access capital through mission-driven lenders like credit unions \u2013 institutions that truly understand and serve the unique needs of their communities, rather than relying on a one-size-fits-all approach.\u201d\n\n\u201cOn behalf of America\u2019s leading Main Street banks, we commend Senator Scott for reintroducing the Protecting Access to Credit for Small Businesses Act, which rightly seeks to ensure the SBA does not engage in direct lending under the 7(a) program. Allowing the SBA to compete with private sector lenders would not only strain program resources and drive up costs, but also discourage banks from partnering with the SBA\u2014ultimately undermining access to capital for the small businesses that need it most,\u201d said Lindsey Johnson, President and CEO, Consumers Bankers Association.\n\nRebeca Romero Rainey, President and CEO, Independent Community Bankers of America said, \u201cICBA and the nation\u2019s community banks thank Chairman Scott for introducing the Protecting Access to Credit for Small Businesses Act to bar the SBA from making direct loans under its 7(a) program. Given the SBA\u2019s poor and costly track record in direct lending \u2013 including high subsidy rates and excessive instances of fraud in previous direct loan programs \u2013 ensuring the 7(a) program continues to utilize private-sector lending expertise is critical to preserving its continued success in supporting small businesses.\u201d\n\n\u201cThe South Carolina Bankers Association greatly appreciates Sen. Scott for introducing the Protecting Access to Credit for Small Business Act. This legislation will ensure that the proper place for lending is with banks and not the government. Everyday banks efficiently, and with deep knowledge of their customers and communities, provide critical financing for small businesses. The Small Business Administration is an important partner, but banks are ultimately best equipped to take care of their communities,\u201d said Fred L. Green III, President and CEO, South Carolina Bankers Association.\n\nBackground\n\nPresident Biden\u2019s fiscal year 2025 budget included a proposal that allows the SBA to directly make loans under the 7(a) lending program.\n\nThe SBA has a history of performing poorly in lending programs compared to the private sector.\n\nAccording to the SBA Office of Inspector\u2019s 2023 report, the government-led COVID-19 Economic Injury Disaster Loan (EIDL) program had $136 billion in potential fraud (33 percent of total funds disbursed). In contrast, the private-sector-led Paycheck Protection Program (PPP) had $64 billion (8 percent of funds disbursed).\n\nSen. Scott has continued to lead in pushing back against the Biden administration\u2019s attempted federal overreach into the direct lending space, including:\n\nIntroducing the Protecting Access to Credit for Small Business Act in the 117th and 118th Congress with Senator John Kennedy (R-La);\n\nSending a letter to Senate Majority Leader Chuck Schumer, then-Speaker Nancy Pelosi, and then-House and Senate Small Business Committee Chairs Ben Cardin and Nydia Vel\u00e1zquez warning against their plan to make the SBA a direct lender through the Democrats\u2019 reckless tax and spending bill.\n\nEndorsements\n\nThis bill is supported by:\n\nAmerican Bankers Association\n\nAmerica\u2019s Credit Unions\n\nBank Policy Institute\n\nCarolinas Credit Union League\n\nConsumer Bankers Association\n\nIndependent Community Bankers of America\n\nSouth Carolina Bankers Association.\n\n###", 1, "2026-03-30T01:40:41Z", "2026-04-06T18:48:13Z"]], "columns": ["url", "title", "date", "year", "month", "party", "chamber", "state", "member_name", "bioguide_id", "domain", "scraper", "source", "date_source", "text", "has_text", "collected_at", "updated_at"], "primary_keys": ["url"], "primary_key_values": ["https://www.scott.senate.gov/media-center/press-releases/senator-scott-colleagues-introduce-bill-to-stop-government-overreach-in-small-business-lending/"], "units": {}, "query_ms": 2.7793138287961483, "source": "dwillis/congress-press", "source_url": "https://github.com/dwillis/congress-press", "license": "MIT", "license_url": "https://github.com/dwillis/congress-press/blob/main/LICENSE"}