Main Street Parity Act

The bill would amend the Small Business Investment Act of 1958 to change the eligibility criteria for Small Business Administration loans used for plant acquisition, construction, conversion, or expansion, including land acquisition. It would strike two of the alternative conditions (clauses (ii) and (iii)) that borrowers currently must satisfy under the law's provision for limited or single-purpose properties, leaving fewer hurdles for qualifying for these loans. A related conforming amendment updates a cross-reference elsewhere in the same section to match the new structure. According to the CRS summary, the practical effect is to reduce by 5% of total project cost the amount of equity a borrower must contribute for loans involving limited or single-purpose properties. The bill makes no other changes to the Small Business Investment Act and does not alter loan amounts, interest rates, or the Small Business Administration's overall lending authority.

Small businesses seeking Small Business Administration loans to acquire, build, convert, or expand plant facilities or land, particularly those involving limited or single-purpose properties such as specialized manufacturing or industrial buildings. Small Business Administration loan officers and lenders participating in these programs would also apply the revised criteria.

Lowering the equity contribution required for these loans could make financing more accessible to small businesses that lack large amounts of upfront capital, potentially speeding up plant construction or expansion projects. Lenders and the Small Business Administration would need to apply updated eligibility standards when processing these loan applications.

The Small Business Administration would apply the revised statutory criteria when evaluating loan applications for plant acquisition, construction, conversion, or expansion, including limited or single-purpose properties. Because the change strikes specific clauses and renumbers a remaining one, the agency would likely need to update its loan-processing guidance and forms to reflect the narrower list of qualifying conditions and the corresponding cross-reference change, but the bill itself does not create a rulemaking process or reporting requirement.