Meuser Advocates for Increasing Access to Capital for Main Street Businesses

WASHINGTON, D.C. - Yesterday, Congressman Dan Meuser (PA-09) spoke on the House floor ahead of passage of H.R. 6955, the Main Street Access to Capital Act, legislation that would reduce regulations on community banks to make it easier for these institutions to lend to families and small businesses. The legislation would encourage the creation of new banks by tailoring regulations based on a bank's size and risk profile to help community banks remain competitive.

The Main Street Access to Capital Act, led by House Financial Services Committee Chairman French Hill (AR-02) and Financial Institutions Subcommittee Chairman Andy Barr (KY-06),addresses concerns that current regulations place disproportionate burdens on community banks and credit unions. Despite significant differences in the size of smaller financial institutions, many are still beholden to the same regulations as large financial institutions. This bill seeks to establish a more tailored regulatory framework for community banks and credit unions while preserving the strength of banking sector regulations, rather than relying on a one-size-fits-all approach. By establishing new standards designed for community banks, this legislation will allow smaller operations to compete with the country's largest financial institutions, improving competition in the financial sector.

"Twenty years ago, community banks financed the majority of America's home loans. Today, it is less than a third. This bill helps reverse that trend; it lowers capital hurdles so new community banks can form and tailors bank regulations so small and mid-size banks are regulated fairly," said Congressman Meuser. "These changes will allow community banks and credit unions to extend more mortgages, be more competitive with their small business loans, and improve access to capital for all Americans. This is a housing bill, a small business bill, an affordability bill, and an access to capital bill. This legislation supports community banks and protects Main Streets across the country."

"As a former community banker, I've seen firsthand how community banks drive Main Street's growth," said Financial Services Committee Chairman French Hill. "For decades, Washington has forced these institutions to operate under rules built for the largest, most systemically important banks, stifling local lending and accelerating industry consolidation. This bill fixes that. It spurs the formation of new banks, restores common-sense tailoring to bank regulation, and removes barriers that have limited lending in communities across the country. Expanding access to capital means entrepreneurs can invest, businesses can grow, and families can build wealth. I want to thank Subcommittee Chairman Andy Barr for his partnership on this bill, and I look forward to the Senate taking up this important legislation."

"Community banks are at the heart of Kentucky's economy. They finance our small businesses, stand by our farmers, and help hardworking families buy homes, start businesses, and build a better future," said Congressman Barr. "House Republicans are delivering on our commitment to strengthen Main Street by cutting red tape, expanding access to capital, and creating an environment where community banks can thrive. I'm grateful to Chairman French Hill for his leadership, and I'm proud the House is advancing this legislation to support the local financial institutions that keep our communities strong."

The Main Street Access to Capital Act will establish a three-year phase-in period for capital requirements, allowing new banks time to grow before meeting full regulatory standards. It will also require regulators to provide clear guidelines for new banks, increasing transparency in the chartering and supervisory process.

This legislation will streamline reporting requirements for community and regional banks, reduce compliance costs, allow banks more flexibility to focus on lending, and standardize the bank examination process by promoting more consistent supervisory standards.

The Main Street Access to Capital Act passed the House of Representatives by a bipartisan vote of 270 - 155.

Congressman Meuser spoke on the House floor in support of the legislation. Watch his full remarks here.

Read the full text of the bill here.