Protecting Access to Credit for Small Businesses Act

This bill (S 3992) prohibits the Small Business Administration (SBA) from making new direct loans under its 7(a) program, which previously allowed the SBA to lend directly to small businesses. It specifically stops the SBA from issuing new direct loans after the bill's enactment, though it requires the SBA to continue servicing any existing direct loans made before the law took effect. The key mechanism is a clear prohibition on new direct lending, shifting future 7(a) credit access to rely on SBA-guaranteed loans through private lenders instead. This directly affects the SBA's operational authority and the structure of how small businesses access certain types of federal credit.