Main Street Parity Act
Key claim: The Main Street Parity Act (HR5763) reduces by 5% the equity a borrower must provide for certain SBA loans used for plant acquisition, construction, conversion, or expansion of limited or single-purpose properties.
Abstract
(HR5763 · 119th Congress) Main Street Parity Act This bill lessens the financing requirements for certain Small Business Administration loans to small businesses for plant acquisition, construction, conversion, or expansion, including the acquisition of land. Specifically, the bill reduces the amount of equity a borrower must provide by 5% of the total cost for loans for limited or single-purpose properties. Latest action (2026-01-26): Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
Why this matters
For small-business borrowers seeking SBA financing for specialized real estate (limited or single-purpose facilities), a 5-point reduction in the required equity contribution meaningfully lowers the down-payment hurdle, expanding access to plant acquisition, construction, and expansion loans. For SBA lenders, it modestly shifts the loss-given-default profile on a narrow but historically higher-risk collateral category. The change is legislative and still moving through Congress, so it has no immediate effect on current SBA underwriting standards.