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The Leader’s Floor Lookout: Thursday, June 5, 2025

Washington, June 5, 2025
Here’s what to watch for on the House Floor today:
 
Relocating SBA Offices Away from Sanctuary Cities

Sanctuary cities work against our nation and people’s interest, blatantly ignoring U.S. immigration laws to shield illegal aliens from facing the consequences of their actions – threatening the safety of American families, communities, and small businesses and weakening rule of law. 

The Democrat politicians implementing harmful ‘sanctuary’ policies could repeal these policies at any time and comply with federal immigration enforcement to the benefit of their communities – they choose not to. It’s time for these sanctuary cities, counties, and states to be held accountable for their disastrous policies, instead of hardworking American taxpayers.

Under the Trump Administration, sanctuary cities are once again being held accountable and the rule of law is being restored. President Trump continues to take steps to redirect federal resources away from jurisdictions that disregard immigration laws and put Americans at risk and toward communities that prioritize Americans’ safety.

House Republicans are bringing legislation to ensure the SBA is focused on supporting the growth and safety of American workers, businesses, and communities by providing vital resources while rejecting woke Democrat sanctuary policies that put our communities, SBA workers, and offices in danger. This legislation codifies President Trump's executive order to ensure taxpayer resources are not used to benefit lawless jurisdictions that endanger American citizens by harboring criminal aliens.

H.R. 2931, the Save SBA from Sanctuary Cities Act, introduced by Rep. Brad Finstad, relocates SBA offices from sanctuary cities and jurisdictions to non-sanctuary municipalities to better make sure these federal resources are going to benefit American small businesses and communities. 

American citizens and small businesses should be the ones being served by SBA offices, and they should have access to these resources without the threat of violence – House Republicans won’t stop working to hold sanctuary cities accountable, keep Americans safe, and ensure compliance with federal law.


Protecting SBA Loan Programs From Over-Licensing of SBLCs

The Small Business Administration’s 7(a) lending program provides financial support to small businesses by offering private banks government guarantees to encourage loans to small businesses struggling to secure credit elsewhere. The SBA can issue these government-backed loans through certified depository institutions, such as banks or credit unions, or certified non-depository Small Business Lending Companies (SBLCs).

Because non-depository SBLCs are solely regulated by the SBA, while depository institutions are regulated by the federal reserve, the SBA capped the number of SBLCs it would license to 14 in 1981 to ensure it was able to dutifully oversee these entities.

In 2023, however, the Biden Administration’s SBA issued a rule getting rid of the SBA’s self-imposed 40-year moratorium limiting new SBLC licensing, potentially overburdening the agency by expanding despite the lack of resources and putting the integrity of the SBA’s loan programs at risk. Now, after the failure of new, Biden licensed SBLCs, the total count is 16 SBLCs.

In order to protect the integrity of the SBA lending program and ensure it remains able to support small businesses in need, House Republicans are bringing legislation that aligns with Trump Administration executive action to reverse the Biden-era change and make sure future administrations don’t extend the program beyond the SBA’s oversight capabilities. This would not remove existing SBLC licenses, just prevent new licenses.

Rep. Rob Bresnahan’s legislation, H.R. 2987, the Capping Excessive Awarding of SBLC Entrants (CEASE) Act, limits the number of SBA-licensed for-profit Small Business Lending Companies (SBLCs) to 16 to restore proper oversight capabilities to the SBA and protect the integrity of SBA loan programs.

Many small businesses depend on support from the SBA lending programs to survive. House Republicans are making sure the SBA is equipped to continue oversight, while preserving the role of federally regulated lenders, like community banks, as a fundamental pillar of the SBA 7(a) loan program.