Main Street Parity Act
Summary
The Main Street Parity Act amends 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 Act passed the House of Representatives on January 20, 2026.
Expected Effects
The Act simplifies the loan application process for small businesses seeking financial assistance for plant-related projects. By removing clauses (ii) and (iii) from Section 502(3)(C) of the Small Business Investment Act, the criteria become less restrictive. This could lead to more small businesses qualifying for and receiving these loans.
Potential Benefits
- Streamlined loan criteria for small businesses.
- Increased access to capital for plant acquisition, construction, conversion, or expansion.
- Potential for business growth and job creation in local communities.
- Simplification of the application process, reducing administrative burden.
- Enhanced competitiveness of small businesses.
Potential Disadvantages
- Potential for increased risk to lenders due to less stringent criteria.
- Possible misuse of funds if oversight is insufficient.
- May not benefit all types of small businesses equally.
- Could lead to increased competition among small businesses for available resources.
- The long-term economic impact is uncertain and depends on implementation.
Constitutional Alignment
The Act appears to align with the spirit of promoting the general welfare, as stated in the Preamble of the US Constitution. Article I, Section 8 grants Congress the power to regulate commerce and enact laws necessary and proper for carrying out its enumerated powers. This Act falls under that purview as it relates to supporting small businesses, which are vital to the economy.
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).