2 versions

CosmeticWhat changed in REFERENCE CHANGE SENATEcompared with INTRODUCED IN SENATE (Mar 6, 2025)

Technical corrections only. The only change between v1 and v2 is an update to the bill's referral status, noting its discharge from the Committee on Banking, Housing, and Urban Affairs and referral to the Committee on Small Business and Entrepreneurship. No substantive policy changes were made to the bill's text.

S. 901119th CongressIntroduced Mar 6, 2025

LIONs Act of 2025

Senate Committee DischargedCommerceSubstantive

View bill text

Sponsor: Sen. Tillis, Thomas [R-NC]
Committees: Small Business and Entrepreneurship Committee (primary)
Last action: Jul 30, 2025

Bottom line

The bill expands the financial capacity of the SBA's key loan programs, enabling small businesses to access substantially larger amounts of federally guaranteed capital for growth and fixed asset acquisition.

What it actually does

This bill significantly increases the maximum loan amounts for two primary Small Business Administration (SBA) loan programs: the 7(a) loan program and the Development Company (504) loan program. It doubles the maximum 7(a) loan amount from $3,750,000 to $7,500,000, and the gross loan amount threshold from $5,000,000 to $10,000,000. Additionally, it doubles the maximum 504 loan amount from $5,000,000 to $10,000,000, including for projects that meet specific public policy goals like energy efficiency.

Proponents argue

Proponents argue that increasing these loan limits is essential for small businesses to keep pace with rising costs for equipment, real estate, and expansion projects. They contend that the current limits are outdated and restrict the ability of growing businesses to secure adequate financing, especially in high-cost areas or for larger ventures, thereby hindering job creation and economic development across communities.

Opponents contend

Opponents might express concerns that increasing loan limits could expose the federal government to greater financial risk, potentially leading to higher default rates on larger loans and increased taxpayer liability. They might also argue that it could shift the focus of SBA programs away from truly 'small' businesses towards larger, more established enterprises, or potentially contribute to inflation in commercial asset prices.

The bill text is exceptionally short and clear, making it very accessible for any reader to understand its provisions quickly and thoroughly.

Section 2

Increase Maximum Loan Amount for 7(a) Loans

prominently featuredstraightforward

This section amends the Small Business Act to significantly raise the maximum loan amount available under the popular 7(a) loan program. It changes the current maximum loan amount from $3,750,000 to $7,500,000. Additionally, it adjusts the gross loan amount threshold, which is used for calculating certain fees, from $5,000,000 to $10,000,000. This effectively doubles the amount of financing small businesses can receive through this versatile program, which covers a wide range of business needs.

GroupImpactMechanismScale

GroupSmall businesses seeking capitalImpactIncreased access to larger loans for expansion, working capital, or equipment purchases.MechanismDirect increase in statutory loan limits for the 7(a) program.ScalePotentially affects a broad range of small businesses, particularly those with significant capital needs for growth or operating in high-cost areas.

GroupLenders participating in the 7(a) programImpactAbility to offer larger, federally guaranteed loans to small business clients.MechanismExpanded program parameters for loan origination.ScaleCould lead to increased loan volume and larger individual loan sizes for participating financial institutions, potentially increasing their revenue.

Supporters argue

Supporters argue that this increase is vital for small businesses to fund larger projects, acquire more expensive assets, or expand operations in high-cost markets. They believe it will stimulate economic growth and job creation by providing more robust financing options that reflect current market realities and business needs.

Critics contend

Critics might contend that doubling the loan limit could increase the federal government's exposure to risk, as larger loans inherently carry greater potential for loss if a business defaults. They may also suggest it could divert resources or focus from smaller, startup businesses that typically require less capital.

Tradeoffs

The tension lies between providing sufficient capital for growing small businesses to thrive and managing the federal government's financial risk exposure. Larger loans can fuel greater economic growth but also represent larger potential losses for taxpayers if defaults occur.

Section 3

Increase Maximum Loan Amount for Development Company (504) Loans

prominently featuredstraightforward

This section amends the Small Business Investment Act of 1958 to raise the maximum loan amount for the 504 loan program, which provides long-term, fixed-rate financing for major fixed assets like real estate and equipment. It doubles the general maximum loan amount from $5,000,000 to $10,000,000. It also increases the maximum for projects meeting certain public policy goals (e.g., energy efficiency, job creation) from $5,500,000 to $10,000,000. This expansion allows businesses to finance significantly larger fixed asset purchases.

About this analysis. AI-Generated from the official bill text and available committee reports. Gaps in available data are noted explicitly. Verify important details with the official Congress.gov record.

CosmeticWhat changed in REFERENCE CHANGE SENATEcompared with INTRODUCED IN SENATE (Mar 6, 2025)

S. 901119th CongressIntroduced Mar 6, 2025

LIONs Act of 2025

Senate Committee DischargedCommerceSubstantive

View bill text

Sponsor: Sen. Tillis, Thomas [R-NC]
Committees: Small Business and Entrepreneurship Committee (primary)
Last action: Jul 30, 2025

Bottom line

What it actually does

Proponents argue

Opponents contend

The bill text is exceptionally short and clear, making it very accessible for any reader to understand its provisions quickly and thoroughly.

Section 2

Increase Maximum Loan Amount for 7(a) Loans

prominently featuredstraightforward

GroupImpactMechanismScale

Supporters argue

Critics contend

Tradeoffs

Section 3

Increase Maximum Loan Amount for Development Company (504) Loans

prominently featuredstraightforward