Barr Leads House Passage of Main Street Capital Access Act to Strengthen Community Banks and Expand Opportunity

WASHINGTON, D.C.-Congressman Andy Barr (R-KY-06), Chairman of the House Financial Services Subcommittee on Financial Institutions, applauded House passage of the Main Street Capital Access Act, legislation to strengthen community banks, expand access to credit, and support families, farmers, and small businesses across Kentucky.

The legislation modernizes outdated banking regulations that have made it harder for community banks to grow and compete. By reducing unnecessary regulatory burdens and encouraging the formation of new community banks, the bill helps preserve a competitive financial system while expanding access to capital on Main Street.

Subcommittee Chairman Barr said, "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. 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 Kentucky Bankers Association said in part, "We sincerely appreciate your continuous support of Kentucky's community banks and for all of your hard work on the Act. We expressly support the Act. Specifically, the changes under the Act allow more flexibility with keeping deposits local, tailoring regulation appropriate with a bank's size and risk profile, and halting uncertain methods and practices in supervision, all of which significantly benefit Kentucky's community banks and the communities they serve."

Commerce Lexington said, "Commerce Lexington supports policies that make it easier for businesses to access capital, grow, and create jobs. A modern, predictable regulatory environment is critical to attracting investment and keeping Kentucky competitive. We appreciate Chairman Andy Barr's leadership in advancing commonsense reforms that strengthen our financial system and support long-term economic growth for businesses and communities across the Bluegrass."

The Main Street Capital Access Act includes a series of reforms to promote the creation and long-term success of community banks. Barr has been a leading advocate for policies that encourage de novo bank formation, particularly in rural communities where access to financial services has declined in recent years. While 181 new bank charters were approved in 2007, fewer than ten new banks opened annually between 2010 and 2019. At the same time, rural America lost more than 1,500 bank branches across 794 counties between 2012 and 2017.

The legislation will:

• Establish a three-year phase-in period for capital requirements, allowing newly chartered banks time to grow before meeting full regulatory standards.
• Increase transparency in the chartering and supervisory process by requiring regulators to provide clearer guidance for new banks.
• Better tailor federal banking regulations to a bank's size and risk profile, ensuring community banks are not treated like the nation's largest financial institutions.
• Streamline reporting requirements for community and regional banks, reducing compliance costs and allowing more resources to flow toward lending.
• Improve the bank examination process by promoting more consistent supervisory standards, including reforms to CAMELS ratings.
• Strengthen competition by ensuring community banks and credit unions can better compete with the country's largest financial institutions.

The Main Street Capital Access Act now heads to the Senate for consideration.