Loans In Our Neighborhoods Act of 2025; LIONs Act of 2025
Summary
The Loans In Our Neighborhoods Act (LIONs Act) of 2025 aims to amend the Small Business Act and the Small Business Investment Act of 1958. The key provision is to increase the maximum loan amounts for certain loans provided by the Small Business Administration (SBA). This includes increasing the maximum loan amount for 7(a) loans and development company loans.
Expected Effects
The LIONs Act of 2025, if enacted, would significantly increase the capital available to small businesses through SBA loan programs. This could lead to increased investment in small businesses and potentially stimulate economic activity. The increased loan amounts may also allow for larger projects and expansions.
Potential Benefits
- Increased access to capital for small businesses.
- Potential for business expansion and job creation.
- Stimulation of local economies through increased investment.
- May enable small businesses to compete more effectively with larger companies.
- Could lead to innovation and development of new products and services.
Most Benefited Areas:
Potential Disadvantages
- Increased risk of default due to larger loan amounts.
- Potential for inflation if not managed correctly.
- May disproportionately benefit larger small businesses.
- Increased burden on the SBA to manage larger loan portfolios.
- Possible need for increased oversight to prevent misuse of funds.
Constitutional Alignment
The bill appears to align with the spirit of the Constitution, particularly the goal of promoting the general welfare. Article I, Section 8 grants Congress the power to regulate commerce and enact laws necessary and proper for carrying out its enumerated powers. Supporting small businesses can be seen as a means to promote economic activity and stability, which falls under the purview of Congress's authority.
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).