Main Street Capital Access Act

Purpose & Problem

Is the problem real and worth federal action?

H.R. 6955 aims to change federal banking rules across several areas, including how new banks are formed, how regulators check banks, and how bank mergers are reviewed. The bill targets what it describes as regulatory burdens on community banks and credit unions.

Scope & Related Provisions

Does it stay focused, or carry unrelated add-ons?

The bill covers eight distinct topic areas, from bank formation and supervision to merger rules and technology partnerships. One provision in Section 803 reduces the Federal Reserve surplus fund by $425,000,000, effective September 2036, which is unrelated to banking supervision or merger reform.

Who Is Affected

Who benefits, and who bears the cost?

Community banks, credit unions, and small bank holding companies face fewer or less frequent examinations under the bill. Federal banking regulators must write new rules, conduct studies, and file more reports, adding new duties. Banks seeking mergers face shorter government decision windows.

Cost & Funding

Is it affordable and responsibly funded?

The bill authorizes the CDFI Bond Guarantee Program to back up to $1,000,000,000 in guarantees per fiscal year. Section 803 reduces the Federal Reserve surplus fund by $425,000,000 starting in 2036. Agencies may charge fees for new written-advice procedures, set by each agency based on estimated processing costs.

Risks & Implementation

What could go wrong in practice?

Several provisions require multiple agencies to write new rules within set deadlines, such as 12 months, which depends on agencies having enough staff and resources. The bill deems merger applications approved if regulators miss a 120-day deadline, which could limit review time if applications arrive incomplete.

TITLE I--NEW BANK FORMATION AND LOCAL COMMUNITY ACCESS

This title makes it easier to form new banks and credit unions by speeding up review timelines and making certain community bank authorities permanent unless regulators find safety problems. It requires federal banking agencies to publish yearly reports on how many charter and deposit insurance applications they receive, approve, or deny, along with how long approvals take. It also strengthens the CDFI Bond Guarantee Program by extending its deadline to 2028, adjusting guarantee limits, and requiring the Treasury Department to testify annually before Congress about community development lending.

TITLE II--TAILORING BANK REGULATION

This title requires federal banking regulators to match their rules to the size and risk level of each type of bank, so smaller and lower-risk banks face less regulatory burden. It also raises the asset threshold for small bank holding companies to $6 billion, reduces paperwork requirements for community banks, and directs regulators to automatically update dollar thresholds in banking laws every five years based on economic growth or inflation. Agencies must report to Congress on how they are adjusting rules and modernizing bank oversight.

TITLE III--FAIR AND TRANSPARENT BANK SUPERVISION

This title requires bank regulators to use clearer, more consistent standards when grading banks and conducting exams. It creates a new independent review board that banks can appeal to if they disagree with an examiner's findings, and sets deadlines for how long exams can take. Banks and credit unions that are well-run and well-funded can also get lighter-touch exams and have multiple exams combined into one visit.

TITLE IV--REGULATORY ACCOUNTABILITY AND TRANSPARENCY

This title changes how financial regulators operate in three ways. It requires one FDIC board member to have experience with smaller banks under $17 billion in assets, limits board members to two terms or twelve years total, and requires agencies to clearly label guidance documents as non-binding on regulated parties. It also shortens the schedule for reviewing banking regulations from every ten years to every eight years and requires agencies to study the combined cost and impact of their rules on credit access and economic activity.

TITLE V--STRENGTHENING LOCAL BANK FUNDING

This title requires the Federal Reserve to review and improve its discount window lending program, which lets banks borrow money quickly in a crisis, and to report findings to Congress within one year. It also raises the cap on reciprocal deposits from about $96 billion to $250 billion, making it easier for local banks to use deposit-sharing networks without being treated as risky. Additionally, it orders a study on how reciprocal deposits have worked since 2018 and how they affect community banks.

TITLE VI--PROMOTING BANK COMPETITION AND MERGER CLARITY

This title changes the rules for how bank mergers are reviewed by federal regulators. Smaller bank mergers, where the combined institution would have less than $10 billion in assets and would not leave any area with only one bank, no longer need to pass a competition review. It also sets strict deadlines for regulators to approve or deny merger applications within 120 days, and requires regular reviews of how efficiently the merger approval process works.

TITLE VII--STRENGTHENING TRANSPARENCY AND INVOLVEMENT IN BANK RESOLUTIONS

This title changes the rules for how the government handles failing banks. It limits when large banks can buy a failing bank if doing so would make the banking system too concentrated, and requires regulators to first look for smaller buyers. It also requires regulators to report to Congress whenever they waive these concentration limits and explain why no other buyer was chosen.

TITLE VIII--FACILITATING INNOVATION AND BANK PARTNERSHIPS

This title extends the time banks can hold merchant banking investments to at least 15 years and orders federal regulators to study how banks and credit unions partner with financial technology companies. Regulators must report their findings to Congress within one year. It also reduces the Federal Reserve's surplus fund by $425 million, starting in 2036.