Main Street Parity Act

Bill Number: H.R. 5763
Origin Chamber: House
Congress: 119th Congress, Session 2
Policy Area: Commerce
Status: Passed House
Latest Action: 2026-01-26: Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
Last Updated: 2026-06-11T05:06:21Z

AI-Generated Summary

Purpose

The Main Street Parity Act (H.R. 5763) aims to simplify and broaden eligibility criteria for certain Small Business Administration (SBA) loans. These loans help small businesses finance the purchase, construction, conversion, or expansion of facilities (often called "plants"). By amending the Small Business Investment Act of 1958, the legislation seeks to make it easier for a wider range of small businesses to access this funding, promoting parity or fairness in opportunities for "Main Street" (community-based) businesses.

Key Provisions

Amendment to Loan Criteria: Updates Section 502(3)(C) of the Small Business Investment Act by:
Removing two specific eligibility clauses (ii and iii), which likely imposed additional restrictions on who could qualify.
Adding "or" to the end of the remaining clause (i) for smoother language.
Renumbering the final clause (iv) as (ii).
Conforming Change: Adjusts a related section (502(3)(B)(ii)) to reference only the simplified clause (i) in subparagraph (C), ensuring consistency in how the law is applied.

These changes focus on the SBA's 504 loan program, which provides long-term, fixed-rate financing for major assets.

Significant Changes to Existing Law

Simplification of Eligibility: The original law had multiple clauses outlining strict criteria for loan approval, such as requirements tied to job creation, economic impact, or business type. By striking clauses (ii) and (iii), the bill eliminates some of these hurdles, potentially allowing more diverse small businesses (e.g., those not meeting prior niche requirements) to qualify.
Streamlined References: The conforming amendment updates cross-references in the law to align with the new, shorter structure, avoiding confusion in implementation.

No new funding or programs are created; the focus is on refining existing rules.

Potential Impacts

On Government Agencies: The SBA may see increased loan applications and approvals, requiring adjustments to processing but potentially reducing administrative denials. This could enhance the agency's role in supporting economic growth without needing additional resources.
On Citizens: Small business owners gain easier access to affordable loans for growth projects, which could lead to job creation, business expansion, and revitalization of local communities. However, it might increase taxpayer exposure if loans default more frequently due to broader eligibility.
On International Relations: Minimal direct impact, as the bill is domestic and focused on U.S. small businesses.

Main Stakeholders Affected

Small Businesses: Primary beneficiaries, especially community-based or "Main Street" enterprises seeking to acquire or upgrade facilities.
SBA and Lenders: Certified development companies and banks participating in the 504 program will handle more applications under simplified rules.
Local Economies: Communities reliant on small business growth, including workers and suppliers who could benefit from expanded operations.

Notable Legal, Constitutional, or Political Implications

Legal: The changes are technical and narrow, ensuring compliance with the broader Small Business Investment Act without altering core loan terms like interest rates or repayment. No challenges to enforceability are evident.
Constitutional: No significant issues; the bill aligns with Congress's authority under the Commerce Clause to regulate interstate economic activity and support small businesses.
Political: Supports pro-small business policies, potentially appealing across party lines by emphasizing economic fairness and local development. It reflects ongoing efforts to reduce regulatory barriers, but could spark debate on loan risk if defaults rise.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Williams, Roger [R-TX-25]

Cosponsors (4)

Rep. Simon, Lateefah [D-CA-12], Rep. Vindman, Eugene Simon [D-VA-7], Rep. Cisneros, Gilbert Ray [D-CA-31], Rep. Goodlander, Maggie [D-NH-2]

Recent Actions

2026-01-26: Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
2026-01-20: Motion to reconsider laid on the table Agreed to without objection.
2026-01-20: On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 383 - 8 (Roll no. 32). (text: CR H930) (Roll call 32)
2026-01-20: Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 383 - 8 (Roll no. 32). (text: CR H930) (Roll call 32)
2026-01-20: Considered as unfinished business. (consideration: CR H939-940)
2026-01-20: At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
2026-01-20: DEBATE - The House proceeded with forty minutes of debate on H.R. 5763.
2026-01-20: Considered under suspension of the rules. (consideration: CR H930-931)
2026-01-20: Mr. Williams (TX) moved to suspend the rules and pass the bill.
2025-12-12: Placed on the Union Calendar, Calendar No. 354.
2025-12-12: Reported by the Committee on Small Business. H. Rept. 119-406.
2025-12-12: Reported by the Committee on Small Business. H. Rept. 119-406.
2025-11-18: Ordered to be Reported by the Yeas and Nays: 27 - 0.
2025-11-18: Committee Consideration and Mark-up Session Held
2025-10-14: Referred to the House Committee on Small Business.

Bill Versions

Main Street Parity Act — issued 2026-01-20 — PDF (4 pages)
Main Street Parity Act — issued 2025-10-14 — PDF (2 pages)
Main Street Parity Act — issued 2026-01-26 — PDF (2 pages)
Main Street Parity Act — issued 2025-12-12 — PDF (4 pages)