H.R.1893 - Loans In Our Neighborhoods Act of 2025; LIONs Act of 2025 (119th Congress)
Summary
H.R. 1893, the Loans In Our Neighborhoods Act of 2025 (LIONs Act), aims to amend the Small Business Act and the Small Business Investment Act of 1958. The bill seeks to increase the maximum loan amounts for certain loans provided by the Small Business Administration (SBA). This includes raising the limit for 7(a) loans and development company loans.
Expected Effects
If enacted, the LIONs Act would increase the availability of capital for small businesses by raising the maximum loan amounts. This could stimulate economic activity and job creation within local communities. The increased loan limits may also encourage more businesses to seek SBA-backed financing.
Potential Benefits
- Increased access to capital for small businesses.
- Potential for job creation and economic growth in local communities.
- Encouragement of business expansion and investment.
- Simplification of loan application processes due to standardized loan amounts.
- Enhanced ability for small businesses to compete with larger companies.
Potential Disadvantages
- Potential for increased risk of loan defaults due to larger loan amounts.
- Possible inflationary pressure from increased lending.
- Risk of misallocation of capital if loans are not properly vetted.
- Increased burden on the SBA to manage larger loan portfolios.
- Could lead to over-leveraging of small businesses.
Constitutional Alignment
The bill appears to align with the Constitution's Article I, Section 8, which grants Congress the power to regulate commerce and to make all laws necessary and proper for carrying out its enumerated powers. Supporting small businesses can be seen as promoting the general welfare, as stated in the Preamble. The act does not appear to infringe on any specific constitutional right or limitation.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).