Main Street Parity Act
Summary
The Main Street Parity Act (H.R. 5763) 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 was passed by the House of Representatives and referred to the Senate Committee on Small Business and Entrepreneurship.
Expected Effects
The act simplifies the loan application process for small businesses seeking funds for plant-related projects. By removing clauses (ii) and (iii) from Section 502(3)(C) of the Small Business Investment Act, it reduces the complexity of eligibility requirements. This change could lead to more small businesses qualifying for and receiving these loans.
Potential Benefits
- Streamlined loan application process for small businesses.
- Increased access to capital for plant acquisition, construction, conversion, or expansion.
- Potential for business growth and job creation in local communities.
- Reduced administrative burden for both small businesses and the Small Business Administration (SBA).
- Encourages investment in infrastructure and facilities for small businesses.
Most Benefited Areas:
Potential Disadvantages
- Potential for increased risk of loan defaults due to relaxed criteria.
- Possible unintended consequences from altering established loan criteria.
- May not address other significant barriers to small business growth beyond access to capital.
- Could disproportionately benefit certain types of small businesses over others.
- Requires careful monitoring and evaluation to ensure effectiveness and prevent misuse of funds.
Constitutional Alignment
The bill aligns with the spirit of the Constitution, particularly the General Welfare Clause (Preamble), as it aims to promote economic growth and opportunity for 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, which includes supporting small businesses through loan programs. The act does not appear to infringe upon any specific constitutional rights or limitations.
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).