[Congressional Record Volume 172, Number 13 (Tuesday, January 20, 2026)]
[House]
[Pages H930-H931]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
MAIN STREET PARITY ACT
Mr. WILLIAMS of Texas. Madam Speaker, I move to suspend the rules and
pass the bill (H.R. 5763) to amend the Small Business Investment Act of
1958 to modify the criteria for loans for plant acquisition,
construction, conversion or expansion, and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 5763
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Main Street Parity Act''.
SEC. 2. MODIFICATION TO CRITERIA FOR LOANS FOR PLANT
ACQUISITION, CONSTRUCTION, CONVERSION OR
EXPANSION.
(a) In General.--Section 502(3)(C) of the Small Business
Investment Act of 1958 (15 U.S.C. 696(3)(C)) is amended--
(1) by striking clauses (ii) and (iii);
(2) in clause (i), by inserting ``or'' at the end; and
(3) by redesignating clause (iv) as clause (ii).
(b) Conforming Amendment.--Section 502(3)(B)(ii) of the
Small Business Investment Act of 1958 (15 U.S.C.
696(3)(B)(ii)) is amended by striking ``clauses (i), (ii), or
(iii) of subparagraph (C)'' and inserting ``clause (i) of
subparagraph (C)''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Texas (Mr. Williams) and the gentlewoman from New York (Ms. Velazquez)
each will control 20 minutes.
The Chair recognizes the gentleman from Texas.
General Leave
Mr. WILLIAMS of Texas. Madam Speaker, I ask unanimous consent that
all Members may have 5 legislative days in which to revise and extend
their remarks and include extraneous material on the bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
Mr. WILLIAMS of Texas. Madam Speaker, I yield myself such time as I
may consume.
Madam Speaker, I rise today in strong support of my bill, H.R. 5763,
the Main Street Parity Act.
I also thank the gentlewoman from California (Ms. Simon), my friend,
for joining me in co-leading this bipartisan effort.
The SBA's 504 loan program is an important tool that helps small
businesses obtain affordable financing for the acquisition of fixed
assets, such as land, buildings, and heavy machinery.
To obtain a 504 loan, a small business owner must contribute 10
percent of the total project cost as a form of downpayment. However, if
a small business is seeking financing to build something like a surgery
center or a nursing home, the SBA imposes additional equity
requirements because these properties are deemed limited purpose.
{time} 1540
This initial equity injection was required because limited purpose
properties were believed to be at a higher risk of default. Years of
data show that this assumption is incorrect. In fact, many businesses
facing these increased costs were at lower risk of default than
[[Page H931]]
the broader 504 portfolio. It is time to bring parity to Main Street
and remove the unnecessary lender barriers based on outdated
assumptions.
Madam Speaker, I urge my colleagues to vote ``yes'' on H.R. 5763, and
I reserve the balance of my time.
Ms. VELAZQUEZ. Madam Speaker, I yield myself such time as I may
consume.
Madam Speaker, I rise in support of H.R. 5763, the Main Street Parity
Act.
One of the key functions of the SBA is to ensure that small
businesses in communities across the country have access to the capital
they need to grow and scale their operations.
The SBA has long served this need through its loan guarantee program,
including the 504/CDC program. The 504/CDC program supports small
businesses in accessing capital for the development of major fixed
assets like land, buildings, equipment, and machinery. As part of the
program, loans are guaranteed for so-called special use properties like
amusement parks, car washes, bowling alleys, and gas stations.
When the special use designation was created in 1996, Congress
required businesses developing these properties to pay a special
purpose penalty. The penalty requires these businesses to provide at
least 15 to 20 percent equity instead of the minimum 10 percent for
standard 504/CDC loans.
While the additional equity requirement served an important safeguard
for the program when first enacted, we have seen over time that the
extra risk is not as great as anticipated.
In the past 30 years, technological developments and time have shown
that many of these properties can be successfully repurposed for
alternative uses, increasing the market pool of potential buyers.
Further, the charge-off rates for special purpose and standard loans
are similar, demonstrating that these loans pose no greater risk than
regular 504 loans. Because of its limited risk, the special use penalty
is no longer necessary.
H.R. 5763 reduces the minimum equity requirement for special purpose
properties to at least 10 percent, in line with the requirement for
standard 504/CDC loans. Most importantly, it maintains discretionary
authority to require higher equity if deemed necessary. This bill is
supported by the National Association of Development Companies.
Madam Speaker, I applaud Chairman Williams' and Representative
Simon's bipartisan work on this issue, and I ask all my colleagues to
support it.
Madam Speaker, I reserve the balance of my time.
Mr. WILLIAMS of Texas. Madam Speaker, I reserve the balance of my
time.
Ms. VELAZQUEZ. Madam Speaker, I yield 3 minutes to the gentlewoman
from California (Ms. Simon).
Ms. SIMON. Madam Speaker, I thank Representative Velazquez for her
support, particularly for freshman members from the Democratic side on
the Small Business Committee and to Representative Williams for his
collaboration on this bill.
Madam Speaker, I am extremely proud to lead the Main Street Parity
Act with Chair Williams. As members of the Small Business Committee,
one of the most bipartisan committees in the 119th Congress, we hear
the same messages repeated every single day: Small businesses don't
need special treatment. In fact, they are just asking for a fair shot
in this economy.
The SBA's 504 loan program is designed to provide that fair shot
through basic good policy and affordable, long-term financing. The
financing helps small businesses buy buildings, buy property, expand
operations, and employ Main Street neighbors throughout our community.
Under the current law, not all small businesses are treated the same.
Owners of so-called small purpose properties are required to put up
significantly more cash up front, often 5 to 10 percent more than
standard property owners. These include places like bowling alleys, car
washes, marinas, funeral homes, and recreation centers. These are the
kinds of small businesses that serve local families, create jobs, and
keep our communities vibrant.
For many entrepreneurs, the higher equity requirement is the
difference between jumping in headfirst and creating new economic
opportunities for their communities and families or walking away
entirely.
This way of doing business just doesn't reflect our current economic
or technological realities. This bill offers a new opportunity for
Americans across the country to step forward.
The Main Street Parity Act is common sense. It is a clear fix that
brings these loans in line with the 504 standardization programs by
setting an equity requirement at 10 percent.
Madam Speaker, I encourage Members from both sides of the aisle to
put small business owners and their employees first by supporting this
bill.
Mr. WILLIAMS of Texas. Madam Speaker, I am prepared to close, and I
reserve the balance of my time.
Ms. VELAZQUEZ. Madam Speaker, I yield myself the balance of my time.
Madam Speaker, I, again, thank Chairman Williams and Representative
Simon for their bipartisan work on this bill. I encourage all my
colleagues to vote ``yes,'' and I yield back the balance of my time.
Mr. WILLIAMS of Texas. Madam Speaker, H.R. 5763 allows small
businesses on Main Street to have equal access to SBA 504 loans. I urge
my colleagues to support this legislation, and I yield back the balance
of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Texas (Mr. Williams) that the House suspend the rules
and pass the bill, H.R. 5763.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. WILLIAMS of Texas. Madam Speaker, on that I demand the yeas and
nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this motion will be postponed.
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