Main Street Parity Act

Floor Speech

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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)''.
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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.

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.

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Mr. WILLIAMS of Texas. Madam Speaker, I reserve the balance of my time.

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

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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.

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Mr. WILLIAMS of Texas. Madam Speaker, on that I demand the yeas and nays.

The yeas and nays were ordered.

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