Main Street Parity Act
This bill reduces the minimum down payment from 15% to the standard 10% for certain borrowers using the Small Business Administration’s (SBA) 504 loan program for commercial real estate and equipment. Newer companies that have been in business for two years or less, as well as established companies buying specialized, single-purpose facilities like hotels or medical offices, would be able to qualify with 10% cash down instead of 15%. A higher 20% down payment would remain mandatory only when a borrower is both under two years old and buying a specialized facility.
What this bill touches.
Who it helps · who it burdens.
Who it helps
- Small business borrowers seeking SBA 504 financingUnder Section 2, small businesses seeking SBA 504 loans gain more flexibility in meeting their required project equity contributions because the bill removes two statutory restrictions on using subordinate debt.
The provisions, in plain language.
Modifies borrower equity rules for Small Business Administration (SBA) 504 development loans by removing two statutory conditions on subordinate financing, allowing small businesses to count secondary debt toward their required project contribution as long as it meets the primary subordination requirement or standards set by the SBA.