House · HR 5763 · 119th Congress
Main Street Parity Act
Sign in to cast a dissent vote.
Summary
This bill changes the rules for certain Small Business Administration loans used to buy or build property. It removes a requirement that small business owners put in extra money when buying special-use buildings. Owners who want to purchase or expand limited-use properties will now face the same rules as other borrowers.
In Favor
Single-use properties like hotels, gas stations, and car washes have real resale markets, yet SBA rules require their buyers to put down 5% more than other borrowers. That extra burden can block creditworthy small business owners from financing with no clear evidence it reduces defaults or losses. Removing this requirement lets capable borrowers access SBA loans on terms that better match actual risk.
Against
The extra down payment requirement existed because single-use buildings are harder to sell if a business fails. Removing it means lenders take on more risk when loans go bad on these properties. Taxpayers could end up covering larger losses if borrowers default on these harder-to-sell buildings.
Additional Considerations
Purpose & Problem
Is the problem real and worth federal action?
This bill changes the rules for a type of Small Business Administration loan used to buy, build, or expand a business property. It lowers the amount of the borrower's own money required upfront for certain property types.
Scope & Related Provisions
Does it stay focused, or carry unrelated add-ons?
The provisions stay on topic. The bill makes one focused change to a single section of the Small Business Investment Act of 1958, covering only the equity rules for these property loans.
Who Is Affected
Who benefits, and who bears the cost?
Small businesses seeking SBA loans for limited or single-purpose properties pay less of their own money upfront. Lenders and the SBA must follow the updated rules for these loans.
Cost & Funding
Is it affordable and responsibly funded?
The bill does not authorize or appropriate a specific dollar amount. It reduces the required borrower equity by 5% of the total project cost for loans on limited or single-purpose properties, shifting more of the financing onto the SBA loan.
Risks & Implementation
What could go wrong in practice?
The bill removes two existing clauses from the loan criteria, which may require the SBA to update its rules and forms to reflect the change. Agencies and lenders will need to apply the new, simpler standard consistently across affected loan applications.
For the actual bill text, see congress.gov.
AI-generated · Published 6/5/2026