Main Street Parity Act

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.

Madam Speaker, I yield 3 minutes to the gentlewoman from California (Ms. Simon).

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.

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.

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.

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.

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

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.

Madam Speaker, I reserve the balance of my time.

Madam Speaker, I am prepared to close, and I reserve the balance of my time.

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.

Madam Speaker, on that I demand the yeas and nays.

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. Speaker, I was not present for two Roll Call votes on Tuesday, January 20, 2026. Had I been present, I would have

voted: YEA on Roll Call No. 32, On Motion to Suspend the Rules and Agree to H.R. 5763; and YEA on Roll Call No. 33, On Motion to Suspend the Rules and Agree to H.R. 5764.

Madam Speaker, I attended an official meeting that did not end on time and was not able to reach the House Chamber before the first vote of the series closed. Had I been present, I would have voted YEA Roll Call No. 32.