Main Street Parity Act
Summary
The Main Street Parity Act aims to amend the Small Business Investment Act of 1958. It modifies the criteria for loans related to plant acquisition, construction, conversion, or expansion for small businesses. The bill seeks to streamline the loan application process by removing certain clauses within Section 502(3)(C) of the original act.
Expected Effects
The likely effect is a simplification of the loan application process for small businesses seeking funding for plant-related projects. This could lead to quicker approvals and increased access to capital. The removal of clauses may broaden the scope of eligible projects or reduce administrative burdens.
Potential Benefits
- Simplified loan application process.
- Potentially quicker loan approvals.
- Increased access to capital for small businesses.
- Possible expansion of eligible projects for funding.
- Reduced administrative burden for applicants.
Most Benefited Areas:
Potential Disadvantages
- Potential for unintended consequences due to the removal of specific clauses.
- Risk of less oversight in the loan approval process.
- Possible shift in the types of projects that receive funding, potentially disadvantaging some sectors.
- Uncertainty regarding the long-term impact on the overall effectiveness of the Small Business Investment Act.
- May not address other significant barriers to small business growth beyond plant-related financing.
Constitutional Alignment
The bill appears to align with the spirit of promoting the general welfare, as stated in the Preamble of the US Constitution, by supporting small businesses. Article I, Section 8 grants Congress the power to regulate commerce and enact laws necessary and proper for carrying out its enumerated powers. This bill falls under that purview as it amends existing legislation related to small business investment.
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).