The Main Street Capital Access Act (H.R. 6955) was introduced by Rep. French Hill of Arkansas, the chairman of the House Committee on Financial Services, and Rep. Andy Barr of Kentucky, the chair of the subcommittee on financial institutions, according to a press release issued by the House Committee on Financial Services.
The bill will “reinvigorate our community banks and return common sense back to Main Street,” Hill said in the release.
Barr said it will “advance a regulatory framework that encourages growth and fuels economic activity on Main Street.”
The Main Street Capital Access Act will restore “regulatory fairness, transparency and right-sizing” by returning tailoring to bank regulation, prohibiting the use of reputational risk in examinations, focusing bank supervision on material risks related to safety and soundness, providing greater oversight of how federal banking regulators engage with international organizations, and indexing asset-based thresholds for bank regulations to nominal GDP, according to a one-pager about the bill issued Wednesday by the House Committee on Financial Services.
The bill will also promote “a healthy, growing and competitive banking industry” by lowering barriers to entry for new banks and fixing the bank resolution framework for failed banks while protecting depositors and the economy, the one-pager said.
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It will also make it easier for small- to medium-sized banks to access funding and capital by enabling greater use of reciprocal and custodial deposits, and improving the Community Bank Leverage Ratio framework, per the one-pager.
Barr said in April that he supports bills that will tailor federal bank regulations to financial institutions’ risk profiles and maintain Congress’ authority over the federal banking regulatory agencies.
During a subcommittee hearing on ways to increase accountability in bank supervision and enhance interagency coordination, Barr said: “I’ve heard from community bankers across the country about the inconsistency and lack of clarity in the supervision and examination framework being driven by partisan bureaucrats in Washington.”
The Independent Community Bankers of America said in a Thursday (Jan. 8) press release that the Main Street Capital Access Act contains many provisions supported by the organization that would address key policy challenges faced by community banks.
“Following the Financial Services Committee’s efforts throughout 2025 to advance numerous pro-community bank bills, we look forward to continuing to work together [with Congress and the administration] to move the comprehensive Main Street Capital Access Act through Congress to amplify the value that our nation’s community banks bring to local economies nationwide,” ICBA President and CEO Rebeca Romero Rainey said in the release.
The PYMNTS Intelligence report “Community Banks Appeal to Small Businesses, But…” found that 23% of small- to medium-sized businesses (SMBs) choose local banks or credit unions.
Many SMBs turn to community banks and credit unions for their personalized service and local accessibility, according to the report.
