Congressman Andy Barr (R-KY-06), Chairman of the Subcommittee on Financial Institutions, announced that the Main Street Capital Access Act has passed through the House Financial Services Committee. The bill is now set to be considered by the full House of Representatives. The legislation aims to update regulatory rules and reduce obstacles for small and mid-sized banks, with a focus on increasing access to credit in communities across Kentucky.
The act is designed to modernize outdated regulations, eliminate barriers that limit growth for smaller banks, and prevent further consolidation among large financial institutions. Supporters say these measures will help maintain a competitive banking environment and protect depositors as well as the broader economy.
“Community banks are the heartbeat of Kentucky’s economy. They power our small businesses, support our farmers, and help families achieve the American Dream. That’s why we must advance a regulatory framework that encourages growth and fuels economic activity on Main Street. I thank Chairman French Hill for his leadership and look forward to pushing this package across the finish line,” said Subcommittee Chairman Congressman Barr.
Chairman French Hill added: “As a former community banker, I know and have seen firsthand the important role they serve to drive the economic engine of America and help Main Street grow and thrive. Over the past year, the Subcommittee on Financial Institutions under Chair Barr’s leadership has worked tirelessly to examine outdated regulations, listen directly to small businesses, and confront barriers to access capital for small and mid-sized banks. I am proud to introduce the Main Street Capital Access Act with Chair Barr to reinvigorate our community banks and return commonsense back to Main Street.”
Ballard Cassady, President and CEO of the Kentucky Bankers Association, wrote in support: “Kentucky banks have weathered storms, both literal and figurative, while continuing to serve their communities’ needs. The Act will put economic growth and resiliency at the forefront in allowing Kentucky’s community banks to focus on serving Kentucky’s businesses and consumers rather than focusing on overburdensome regulation and artificial barriers to service. 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.”
Rob Nichols, President and CEO of the American Bankers Association said: “We applaud Chairman French Hill and Subcommittee Chairman Andy Barr for their leadership in advancing the Main Street Capital Access Act, which will strengthen community banks by spurring new bank formation, promoting common-sense tailoring, improving supervision and more. We look forward to working with Congress and the administration on additional policies that will help community banks support local businesses, families and the broader economy.”
Lindsey Johnson, President and CEO of the Consumer Bankers Association commented: “Thank you to Chairman French Hill and Subcommittee Chairman Andy Barr for your leadership in introducing the Main Street Capital Access (“Main Street”) Act. This bill will strengthen regulatory supervision, accountability and transparency, and promote a healthy and more competitive banking industry. We appreciate your recognition of the important role that retail banks of all sizes play in driving the economic engine of America and helping Main Street thrive.”
Rebecca Romero Rainey from Independent Community Bankers of America stated: “On behalf of the Independent Community Bankers of America (ICBA) and the nearly 45,000 community bank locations we represent, I write to thank you for scheduling a markup of the Main Street Capital Access Act (H.R. 6955). We urge all committee members to vote YES on this important community bank regulatory relief legislation. ICBA looks forward to working with the Financial Services Committee to advance H.R. 6955.”
The act proposes several reforms including phased-in capital requirements for new banks over three years; clearer guidance from federal regulators during chartering; tailored regulations based on bank size; simplified reporting requirements; improved supervisory standards; updated requirements for credit unions; expanded flexibility for credit unions serving rural areas; and strengthened competition among local lenders.
De novo bank formation—creation of new independent banks—has slowed since 2008. In 2007 there were 181 new charters granted but between 2010-2019 fewer than ten opened per year on average. Between 2012-2017 nearly 1 out of every 7 rural county branches closed nationwide.
Andy Barr has represented Kentucky’s 6th district in Congress since replacing Ben Chandler in 2013 https://barr.house.gov/about/full-biography . He previously served in state government before joining Congress https://barr.house.gov/about/full-biography . Born in Lexington in 1973 https://barr.house.gov/about/full-biography , he graduated from University of Virginia with a BA before earning his JD at University of Kentucky College of Law https://barr.house.gov/about/full-biography .
