H.R. 1893: Loans In Our Neighborhoods Act of 2025

This bill is titled the "Loans In Our Neighborhoods Act of 2025," or LIONs Act of 2025. It aims to modify existing loan limits under the Small Business Act and the Small Business Investment Act of 1958 to provide larger loan amounts for certain types of loans.

Key Provisions

• Increase in 7(a) Loan Maximum: The bill proposes to amend the maximum amount for loans under section 7(a) of the Small Business Act. The new limits would raise the maximum loan amount from $3,750,000 to $7,500,000. Additionally, for loans that grossly exceed set thresholds, the maximum would increase from $5,000,000 to $10,000,000.
• Increase in Development Company Loan Maximum: Similarly, for loans administered under the Small Business Investment Act for development companies, the maximum amount would be increased from $5,000,000 to $10,000,000. This change is intended to facilitate greater access to capital for businesses seeking to invest and grow.

The rationale behind these changes is to enhance financial support for small businesses, potentially allowing them to expand operations, hire more employees, and contribute to local economies by providing more significant funding opportunities when needed.

Impact on Small Businesses

By allowing for higher loan amounts, the bill aims to address the financing needs of small businesses that may require more substantial capital to initiate or expand their operations. This could be particularly beneficial in neighborhoods or areas where access to financing is limited.

Legislative Process

The bill was introduced by Representative Thanedar, with the co-sponsorship of Representative Alford. It has been referred to the Committee on Small Business for further review and consideration.

Relevant Companies

None found.