In committee
Main Street Capital Access Act
This legislation eases regulatory requirements and examination burdens for small and midsized lenders, aiming to help community banks and local credit unions stay competitive against giant financial institutions. It fast-tracks approvals for bank mergers under $10 billion, allows banks to challenge federal agency penalties in federal court rather than through internal agency hearings, and curtails regulators' ability to cite subjective "reputational risk" to penalize institutions. Additionally, it restricts the largest Wall Street banks from acquiring failing institutions during bank rescues, allowing the government to accept bids from smaller lenders even if it slightly increases costs to the federal deposit insurance fund.
People affected—The text regulates financial institutions and regulatory agencies and does not quantify the underlying population of depository customers or employees.
Fiscal magnitude—The text specifies discrete statutory amounts, including reducing the Federal Reserve surplus capital fund cap by $425,000,000 (Sec. 803) and capping CDFI bond guarantees at $1,000,000,000 annually through 2028 (Sec. 104), but total net fiscal impact and implementation costs across all agencies are not determinable from the text.
Reach68provisional · pending reviewrigor: heuristic llm
What this bill touches.
Market protections−25Banking/financial rules−55Corporate concentration
Who it helps · who it burdens.
Who it helps
- Community banks and small credit unionsGain streamlined regulatory treatment, including shortened timelines for formation reviews (Sec. 101), simplified condition reporting under the CBLR (Sec. 201(b)), raised eligibility thresholds to $6 billion for the Small Bank Holding Company Policy Statement (Sec. 202), alternating limited-scope exams and combined exams for institutions under $6 billion (Sec. 303), and exemption from antitrust reviews for mergers resulting in institutions under $10 billion (Sec. 601).
- Depository institutions and affiliated parties facing regulatory enforcementGain the right to elect a hearing in federal district court—rather than before administrative agency tribunals—when facing formal notices of charges, officer removal actions, or civil money penalty assessments (Sec. 302(f)).
- Community Development Financial InstitutionsThe CDFI Bond Guarantee Program is extended through December 31, 2028, providing between $25 million and $1 billion annually in bond guarantee capacity for eligible community development lenders (Sec. 104(b)).
- Financial holding companiesPermitted to hold merchant banking equity investments for a period of not less than 15 years, expanding the holding period allowed under previous regulations (Sec. 801(a)).
Who it burdens
- Federal financial regulatory agenciesFace strict statutory deadlines on bank examinations (270 days), written regulatory advice (60 days), and bank merger applications (120 days, or deemed approved); must tailor all new rules to minimize institution costs; must include non-binding disclaimers on all guidance; and have supervisory determinations subject to de novo review by an independent appeals board (Sec. 201(a), Sec. 302, Sec. 402, Sec. 604).
Who backs it
- Federal financial regulatory agenciesEach of the five federal financial regulatory agencies (OCC, Federal Reserve, FDIC, NCUA, and CFPB) is required to pay one-fifth of the annual budget, operating expenses, and employee salaries of the newly created Office of Independent Examination Review through agency assessments (Sec. 302(c)).
- Federal Reserve BanksThe statutory cap on the surplus capital of Federal Reserve Banks is reduced by $425 million effective September 1, 2036, transferring excess reserve capital to the Treasury's general fund (Sec. 803).
Who opposes it
- Global systemically important banks (G-SIBs)Directly curtailed from acquiring failing or distressed banks by provisions allowing the FDIC to bypass least-cost resolution requirements specifically to prevent further concentration among G-SIBs, and by strict limitations on regulators waiving statutory concentration limits if any qualified non-capped bidder exists (Sec. 701, Sec. 703).