Bipartisan Bill Would Expand Deposit Insurance Coverage for Small Businesses

Sens. Angela Alsobrooks (MD) and Bill Hagerty (TN) have introduced the Main Street Depositor Protection Act, a bipartisan bill that would expand federal deposit insurance coverage for noninterest-bearing transaction accounts. The legislation builds on a similar proposal previously introduced as an amendment to the National Defense Authorization Act.

The measure would provide up to an additional $10 million in deposit insurance coverage for these accounts at eligible credit unions and banks. By strengthening protections for business deposits, the bill aims to enhance financial stability and support the small and mid-sized lenders that play a critical role in local economies across the country.

The MD|DC Credit Union Association's advocacy team, along with America's Credit Unions, has been actively engaged with Sen. Alsobrooks during the drafting process to ensure that the credit union perspective was represented.

"We want to thank Senators Angela Alsobrooks and Bill Hagerty for sponsoring the Main Street Depositor Protection Act, a significant step forward for credit unions serving businesses in their communities," said John Bratsakis, President/CEO of the MD|DC Credit Union Association. "By strengthening and modernizing the federal deposit insurance system, this legislation expands protection for small business accounts, helping credit unions and local financial institutions build greater trust, ensure stability, and support long-term growth on Main Street."

The Association will continue to monitor the bill's progress as it moves through Congress.