Promoting New Bank Formation Act

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Bill ID: 119/hr/478
Last Updated: July 16, 2026

Sponsored by

Rep. Barr, Andy [R-KY-6]

ID: B001282

Follow the money

The bill

Promoting New Bank Formation Act

HR. 478, 119th Congress — read as touching Commercial Banks.

The sponsor

Rep. Barr, Andy [R-KY-6]

Every bill has someone who introduced it. That name is where the paper trail starts.

The money

$92,054 raised

22 itemised contributions to this sponsor, pulled from FEC filings.

The alignment

70% match to Project 2025

This bill's text tracks the "Trade" section, p. 863-865 of the Mandate for Leadership.

Bill's Journey to Becoming a Law

Track this bill's progress through the legislative process

Latest Action

Placed on the Union Calendar, Calendar No. 64.

May 5, 2025

Introduced

📍 Current Status

Next: The bill will be reviewed by relevant committees who will debate, amend, and vote on it.

🏛️

Committee Review

🗳️

Floor Action

✅

Passed House

🏛️

Senate Review

🎉

Passed Congress

🖊️

Presidential Action

⚖️

Became Law

📚 How does a bill become a law?

1. Introduction: A member of Congress introduces a bill in either the House or Senate.

2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.

3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.

4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.

5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.

6. Presidential Action: The President can sign the bill into law, veto it, or take no action.

7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!

Bill Summary

Another masterpiece of legislative theater, brought to you by the esteemed members of Congress. Let's dissect this abomination, shall we?

The "Promoting New Bank Formation Act" is a cleverly crafted bill that promises to stimulate the creation of new banks while providing relief for rural community banks. How noble. But, as always, the devil lies in the details.

**New Regulations:**

* A 3-year phase-in period for de novo financial institutions to comply with Federal capital standards. Because, you know, these fledgling banks need time to figure out how to be solvent. * Changes to business plans can be requested and approved by the Federal banking agencies within a 30-day window. How convenient. * A special Community Bank Leverage Ratio of 8% for rural depository institutions during the first three years. Because rural banks are just so... fragile.

**Affected Industries:**

* De novo financial institutions (i.e., new banks) * Rural community banks * Federal savings associations (which will now be allowed to make agricultural loans)

**Compliance Requirements and Timelines:**

* The 3-year phase-in period for de novo banks starts on the date they become insured depository institutions. * Business plan changes can be requested at any time during the first three years, but must be approved within 30 days. * Rural community banks will enjoy their special leverage ratio for three years.

**Enforcement Mechanisms and Penalties:**

* None explicitly stated. But don't worry, I'm sure the Federal banking agencies will be diligent in ensuring compliance... or not.

**Economic and Operational Impacts:**

* This bill is a gift to the banking industry, allowing new banks to operate with reduced capital requirements for three years. Because what could possibly go wrong? * Rural community banks will enjoy a temporary reprieve from stricter regulations, but this may create a false sense of security. * The agricultural loan provision for Federal savings associations is a nice little bonus for farmers and the banking industry.

In conclusion, this bill is a masterclass in regulatory capture. It's a thinly veiled attempt to curry favor with the banking industry while pretending to promote new bank formation and rural community development. Don't be fooled – this is just another example of Congress doing the bidding of their corporate overlords.

Diagnosis: Terminal case of Regulatory Capture-itis, with symptoms including excessive pandering to special interests, lack of meaningful oversight, and a healthy dose of legislative theater. Prognosis: Poor.

Related Topics

Banking & Financial ServicesSmall Business & Entrepreneurship
Generated using Llama 3.1 70B (Dr. Haus personality)

💰 Campaign Finance Network

Rep. Barr, Andy [R-KY-6]

Congress 119 • 2024 Election Cycle

Total Contributions
$92,054
21 donors
PACs
$0
Organizations
$1,300
Committees
$0
Individuals
$90,754

No PAC contributions found

1
TED J. BALESTRERI ENTERPRISES
1 transaction
$1,000
2
QUEENSLAKE
1 transaction
$300

No committee contributions found

1
BOUCHER, DAWN D
2 transactions
$6,800
2
VESTER, NANCY
1 transaction
$6,600
3
KOLLAR, CLINT WILLIAM
1 transaction
$6,600
4
FIELD, CHESTER JACK
1 transaction
$6,600
5
FISHER, KENNETH
1 transaction
$6,600
6
FISHER, SHERRILYN
1 transaction
$6,600
7
BROWN, CHRIS
1 transaction
$5,600
8
DARWISH, SAM
1 transaction
$5,000
9
CORRELL, JESS T.
1 transaction
$5,000
10
JOHNSON, TRAVIS
1 transaction
$5,000
11
BARKER, JAMES
1 transaction
$3,409
12
KAUDER, JOSEPH
1 transaction
$3,409
13
LEVINE, ALLAN
1 transaction
$3,409
14
LINDSAY, OLIVIA
1 transaction
$3,409
15
SCHWIMMER, STEVEN
1 transaction
$3,409
16
WOLFF, JARED
1 transaction
$3,409
17
ATKINS, RANDALL
1 transaction
$3,300
18
BARON, CHRIS
1 transaction
$3,300
19
BAUGUESS, SCOTT
1 transaction
$3,300

Cosponsors & Their Campaign Finance

This bill has 10 cosponsors. Below are their top campaign contributors.

Rep. Meuser, Daniel [R-PA-9]

ID: M001204

Top Contributors

10

1
PRIDE MOBILITY PRODUCTS CORP
OrganizationDURYEA, PA
$2,500
Sep 18, 2024
2
COTLER, YUDACUFSKI, HUEBNER
OrganizationSAINT CLAIR, PA
$1,000
Apr 23, 2024
3
DOWD, JOHN J
SUNDANCE VACATIONS • PRESIDENT
IndividualLEHIGHTON, PA
$6,600
Mar 25, 2024
4
PEYKOFF, ANDY
NIAGARA BOTTLING, LLC • CEO
IndividualLAS VEGAS, NV
$6,600
Mar 22, 2024
5
DOWD, JOHN J
SUNDANCE VACATIONS • PRESIDENT
IndividualLEHIGHTON, PA
$6,600
Sep 18, 2024
6
ROWAN, MARC J
APOLLO MANAGEMENT • MANAGEMENT
IndividualGREENWICH, CT
$6,600
Aug 23, 2023
7
ROWAN, CAROLYN
CAROLYN ROWAN COLLECTION • OWNER
IndividualGREENWICH, CT
$6,600
Aug 23, 2023
8
RICH, BRIAN R MR. JR
GILBERTON COAL CO. • EXECUTIVE SALES
IndividualCONSHOHOCKEN, PA
$6,600
Oct 24, 2024
9
VOLPE, ELLEN M
SELF • HOMEMAKER
IndividualWAVERLY TOWNSHIP, PA
$5,800
May 31, 2023
10
VOLPE, CHARLES J
EXCALIBUR INSURANCE MGMT • PRESIDENT
IndividualWAVERLY TOWNSHIP, PA
$5,800
May 31, 2023

Rep. Downing, Troy [R-MT-2]

ID: D000634

Top Contributors

10

1
REPUBLICAN MAINSTREET PARTNERSHIP PAC
PACWASHINGTON, DC
$5,000
Sep 18, 2024
2
BILLION, JOSEPH C
RETIRED • RETIRED
IndividualBOZEMAN, MT
$13,200
Dec 31, 2023
3
BILLION, PEDER J
BILLION DODGE CHRYSLER JEEP RAM • OWNER
IndividualBOZEMAN, MT
$13,200
Dec 31, 2023
4
DURRETT, STEVEN
RETIRED • RETIRED
IndividualBILLINGS, MT
$13,200
May 1, 2024
5
BARNARD, MARY
HOMEMAKER • HOMEMAKER
IndividualBOZEMAN, MT
$6,600
Aug 1, 2024
6
BARNARD, TIMOTHY
BARNARD CONST. CO. • CHAIRMAN
IndividualBOZEMAN, MT
$6,600
Aug 1, 2024
7
GREGORY, JOSEPH R.
IndividualPINEY FLATS, TN
$6,600
Jul 15, 2024
8
PLANTE, THOMAS
RETIRED • RETIRED
IndividualHENDERSONVILLE, TN
$6,600
Sep 10, 2024
9
MENHOLT, DENNY
MENHOLT AUTO GROUP • AUTO DEALER
IndividualBILLINGS, MT
$6,600
Aug 12, 2024
10
GALT, SHARRIE
IndividualMARTINSDALE, MT
$6,600
Nov 1, 2024

Rep. Loudermilk, Barry [R-GA-11]

ID: L000583

Top Contributors

10

1
BOLCH, CARL MR. JR.
IndividualATLANTA, GA
$3,300
Dec 11, 2023
2
STEPHENSON, DONNA MRS.
NONE • HOMEMAKER
IndividualATLANTA, GA
$3,300
Dec 31, 2023
3
STEPHENSON, DONNA MRS.
NONE • HOMEMAKER
IndividualATLANTA, GA
$3,300
Dec 31, 2023
4
STEPHENSON, JAMES MR.
YANCEY BROTHERS • CHAIRMAN
IndividualATLANTA, GA
$3,300
Dec 31, 2023
5
STEPHENSON, JAMES MR.
YANCEY BROTHERS • CHAIRMAN
IndividualATLANTA, GA
$3,300
Dec 31, 2023
6
STEPHENS, WARREN
IndividualLITTLE ROCK, AR
$3,300
Dec 4, 2023
7
STEPHENS, WARREN
IndividualLITTLE ROCK, AR
$3,300
Dec 4, 2023
8
TEAGUE, GREGORY D. MR.
CROY ENGINEERING • ENGINEER
IndividualELLIJAY, GA
$3,300
Oct 11, 2023
9
DICKERSON, JASON
QUEST • PRESIDENT
IndividualCANTON, GA
$3,300
Mar 12, 2024
10
MORRIS, JOHN
REPAY HOLDINGS • CEO
IndividualATLANTA, GA
$3,300
Mar 13, 2024

Rep. De La Cruz, Monica [R-TX-15]

ID: D000594

Top Contributors

10

1
CHOCTAW NATION OF OKLAHOMA
OrganizationDURANT, OK
$3,300
Aug 29, 2024
2
THE CHICKASAW NATION
OrganizationADA, OK
$3,300
Aug 29, 2024
3
ALABAMA- COUSHATTA TRIBE
OrganizationLIVINGSTON, TX
$1,000
Oct 16, 2024
4
ADKINS, JAMES
RETIRED • RETIRED
IndividualHUNTINGTON, WV
$6,600
Oct 24, 2024
5
MOUSSEAU, RAYMOND
RETIRED • RETIRED
IndividualCROSWELL, MI
$6,600
Jun 2, 2024
6
DILAMANI, EDWARD
AGC • BUSINESSMAN
IndividualGREAT NECK, NY
$6,600
Jul 8, 2024
7
EMIG, SUELLEN
RETIRED • RETIRED
IndividualFREEDOM, PA
$6,600
Sep 29, 2024
8
STEWART, FORREST
RETIRED • RETIRED
IndividualDESOTO, IL
$6,534
Feb 13, 2024
9
SPECHT, VIVIAN
RETIRED • RETIRED
IndividualLYMAN, NE
$5,940
Aug 7, 2024
10
CERDA, JULIO
S TEXAS INFRASTRUCTURE GROUP • PARTNER
IndividualMISSION, TX
$5,000
Oct 25, 2024

Rep. Cline, Ben [R-VA-6]

ID: C001118

Top Contributors

10

1
THE CHICKASAW NATION
OrganizationADA, OK
$1,000
Oct 31, 2023
2
JOHNSON, CAMERON MR.
MAGIC CITY FORD • CAR DEALER
IndividualROANOKE, VA
$3,300
Nov 21, 2024
3
ROSENBERG, DIANE MS.
RETIRED • RETIRED
IndividualROANOKE, VA
$3,300
Nov 4, 2024
4
STOLTZFUS, MELISSA
HOMEMAKER • HOMEMAKER
IndividualBRIDGEWATER, VA
$3,300
Nov 5, 2024
5
STOLTZFUS, MICHAEL
DYNAMIC AVIATION • PRESIDENT & CEO
IndividualBRIDGEWATER, VA
$3,300
Nov 5, 2024
6
STOLTZFUS, MICHAEL
DYNAMIC AVIATION • PRESIDENT & CEO
IndividualBRIDGEWATER, VA
$3,300
Nov 13, 2024
7
CLINE, JULIA S MRS.
RETIRED • RETIRED
IndividualLEXINGTON, VA
$3,300
Dec 31, 2023
8
CLINE, JULIA S MRS.
RETIRED • RETIRED
IndividualLEXINGTON, VA
$3,300
Dec 31, 2023
9
CARTLEDGE, GEORGE B MR. III
GRAND HOME FURNISHINGS • PRESIDENT
IndividualROANOKE, VA
$3,300
Mar 30, 2023
10
CARTLEDGE, GEORGE B MR. III
GRAND HOME FURNISHINGS • PRESIDENT
IndividualROANOKE, VA
$3,300
Mar 30, 2023

Rep. Ellzey, Jake [R-TX-6]

ID: E000071

Top Contributors

10

1
CHEROKEE NATION
OrganizationTAHLEQUAH, OK
$3,300
Nov 5, 2024
2
BAND OF CAHUILLA INDIANS AGUA CALIENTE
OrganizationPALM SPRINGS, CA
$3,300
Feb 9, 2024
3
INDIAN COMMUNITY AK-CHIN
OrganizationMARICOPA, AZ
$3,300
Feb 9, 2024
4
BAND OF CAHUILLA INDIANS AGUA CALIENTE
OrganizationPALM SPRINGS, CA
$3,300
Sep 30, 2024
5
PECHANGA BAND OF INDIANS
OrganizationTEMECULA, CA
$3,000
Nov 6, 2023
6
CHEROKEE NATION
OrganizationTAHLEQUAH, OK
$2,500
Dec 11, 2023
7
TIGUA INDIAN RESERVATION TRIBAL COUNCIL GENERAL FUND
OrganizationEL PASO, TX
$2,500
Aug 9, 2023
8
INDIAN COMMUNITY AK-CHIN
OrganizationMARICOPA, AZ
$2,000
Sep 30, 2024
9
ALABAMA-COUSHATTA TRIBE
OrganizationLIVINGSTON, TX
$1,000
Oct 16, 2024
10
TALK FARMS
OrganizationITASCA, TX
$500
Dec 31, 2023

Rep. Franklin, Scott [R-FL-18]

ID: F000472

Top Contributors

10

1
SEMINOLE TRIBE OF FLORIDA
OrganizationHOLLYWOOD, FL
$3,300
Aug 23, 2023
2
SEMINOLE TRIBE OF FLORIDA
OrganizationHOLLYWOOD, FL
$3,300
Aug 16, 2024
3
MICCOSUKEE TRIBE
OrganizationMIAMI, FL
$1,000
Jan 30, 2024
4
CASSIDY, ALBERT B MR.
THE CASSIDY ORGANIZATION INC. • REAL ESTATE
IndividualWINTER HAVEN, FL
$6,600
May 12, 2023
5
CASSIDY, GENA
IndividualWINTER HAVEN, FL
$6,600
Jun 16, 2023
6
CASSIDY, GLORIA
ENTREPRENEUR • ENTREPRENEUR
IndividualWINTER HAVEN, FL
$6,600
May 12, 2023
7
CASSIDY, STEVEN L
IndividualWINTER HAVEN, FL
$6,600
Jun 16, 2023
8
SILBEY, ALEXANDER
ATS COMMUNICATIONS INC • CONSULTANT
IndividualWASHINGTON, DC
$5,000
Mar 29, 2024
9
BRADY, JOSEPH P
RETIRED • RETIRED
IndividualST. PETERSBURG, FL
$5,000
Aug 23, 2023
10
RAUCH, GEORGE W III
IndividualBRADENTON, FL
$4,000
Sep 29, 2023

Rep. Huizenga, Bill [R-MI-4]

ID: H001058

Top Contributors

10

1
POKAGON BAND OF POTAWATOMI INDIANS
OrganizationDOWAGIAC, MI
$3,300
Dec 11, 2023
2
THALOP LLC
OrganizationINDIANAPOLIS, IN
$1,000
Aug 29, 2024
3
BARREL DOG, LLC
OrganizationHOLLAND, MI
$1,000
Sep 1, 2024
4
NOAH HOMES LLC
OrganizationINDIANAPOLIS, IN
$1,000
Sep 30, 2024
5
THALOP LLC
OrganizationINDIANAPOLIS, IN
$1,000
Sep 30, 2024
6
B&B DAIRY
OrganizationPLAINVIEW, TX
$500
Jul 28, 2024
7
B&B DAIRY
OrganizationPLAINVIEW, TX
$500
Sep 5, 2024
8
STRAIGHT LINE RED ANGUS
OrganizationBANGOR, MI
$250
Jul 23, 2024
9
VAN ANDEL, AMY
THE STEVE AND AMY VAN ANDEL FOUNDATION • EXECUTIVE DIRECTOR
IndividualADA, MI
$75,000
Mar 29, 2024
10
VAN ANDEL, STEPHEN
AMWAY • CHAIRMAN
IndividualADA, MI
$75,000
Mar 29, 2024

Rep. Knott, Brad [R-NC-13]

ID: K000405

Top Contributors

10

1
WORDSWORTH, BRIAN L
BRIGADE • MANAGING PARTNER
IndividualRALEIGH, NC
$3,300
Oct 17, 2024
2
BROCK, DAMON A
BROCK CONTRACT SERVICES • CONSTRUCTION
IndividualRALEIGH, NC
$3,300
Oct 21, 2024
3
FONVILLE, KATE J
RETIRD • RETIRD
IndividualRALEIGH, NC
$3,300
Oct 21, 2024
4
HOLDING, FRANK ROYALL
SELF-EMPLOYED • REAL ESTATE
IndividualNEW BERN, NC
$3,300
Oct 23, 2024
5
JOHNSON, C DAVID
JOHNSON LEXUS • OWNER
IndividualRALEIGH, NC
$3,300
Oct 31, 2024
6
TUCKER, GARLAND S III
TRIANGLE CAPITAL CORP. • BROKER
IndividualRALEIGH, NC
$3,300
Dec 5, 2023
7
ARTHUR, KATHERINE CHALK
RETIRED • RETIRED
IndividualMOREHEAD CITY, NC
$3,300
Dec 11, 2023
8
SEWELL, CECIL WHITAKER MR. JR
RETIRED • RETIRED
IndividualRALEIGH, NC
$3,300
Dec 22, 2023
9
HUDSON, KRISTEN ANDERSON
ANDERSON AUTO GROUP • HUMAN RESOURCES
IndividualRALEIGH, NC
$3,300
Nov 30, 2023
10
WALL, NANCY
WALL RECYCLING • ATTORNEY
IndividualWILMINGTON, NC
$3,300
Nov 21, 2023

Rep. Timmons, William R. [R-SC-4]

ID: T000480

Top Contributors

10

1
OTOE MISSOURIA TRIBE
OrganizationRED ROCK, OK
$3,300
Sep 17, 2024
2
CATAWBA INDIAN NATION
OrganizationROCK HILL, SC
$2,000
May 7, 2024
3
CHEVES, WALLACE
SELF • DEVELOPER
IndividualLAS VEGAS, NV
$3,300
Sep 7, 2023
4
BURGAMY, LARRY G. JR.
LINCOLN ENERGY • BUSINESS OWNER
IndividualGREENVILLE, SC
$3,300
Oct 31, 2023
5
HODGES, MICHAEL LYNN
ADVANCE FINANCIAL • PRESIDENT
IndividualNASHVILLE, TN
$3,300
Feb 13, 2024
6
CARROLL, WILLIAM
IPS PACKING • BUSINESSMAN
IndividualGREER, SC
$3,300
Mar 31, 2024
7
FLOYD, KAREN K
SELF • CEO/PUBLISHER
IndividualSPARTANBURG, SC
$3,300
Mar 31, 2024
8
ADAMS, C. DAN
CAPITAL CORP • INVESTMENT BANKER
IndividualGREENVILLE, SC
$3,300
Feb 13, 2024
9
RODRIGUEZ, RAUL
CREI HOLDINGS • CEO
IndividualMIAMI, FL
$3,300
Mar 26, 2024
10
MILLEGAN, BRANTLY
SELF EMPLOYED • TECHNOLOGY
IndividualSIMPSONVILLE, SC
$3,300
Mar 13, 2024

Donor Network - Rep. Barr, Andy [R-KY-6]

PACs
Organizations
Individuals
Politicians

Hub layout: Politicians in center, donors arranged by type in rings around them.

Loading...

Showing 67 nodes and 37 connections (48 secondary connections hidden)

Total contributions: $158,654

Top Donors - Rep. Barr, Andy [R-KY-6]

Showing top 21 donors by contribution amount

2 Orgs19 Individuals

Industry Impact

Which industries are materially affected by specific provisions in this bill. 1 helped.

  • +Commercial Banksconfidence 0.95

    The bill provides a 3-year phase-in period for de novo financial institutions to comply with Federal capital standards (Section 2), allows deviations from approved business plans during that period (Section 3), sets a temporary 8% Community Bank Leverage Ratio for rural community banks with assets under $10B (Section 4), and expands agricultural loan authority for Federal savings associations (Section 5). These provisions directly benefit commercial banks, especially new and rural community bank

Who funds the sponsor on these industries

For each industry this bill affects, here's what the sponsor (Rep. Barr, Andy [R-KY-6])received from donors associated with that industry during the 2022–present cycles. Donations are not proof of intent — they are a record of who funds the people writing the law.

Industries this bill HELPS

  • from 27 contributions
    • SCHARF, CHARLIE$3,300
    • DIMON, JAMES$3,300
    • LEOPOLD, ROBIN$3,300
    • OESTERLE, MARK$2,500
    • MAGUIRE, MICHAEL$2,500

Project 2025 Policy Matches

This bill shows semantic similarity to the following sections of the Project 2025 policy document.AI-enhanced analysis provides detailed alignment ratings.

Trade

Moderate
Vector: 60%
Pages: 863-865AI Enhanced

AI Analysis:

"The bill focuses on reducing regulatory barriers for new and rural banks to promote capital formation and access to credit, which aligns with Project 2025's broader goal of reducing regulatory impediments to entrepreneurial capital formation, though it targets banking regulation rather than securities markets or SEC-specific reforms."

Key themes:regulatory burden reductioncapital formationentrepreneurial supportfinancial deregulationaccess to capital

— 830 — Mandate for Leadership: The Conservative Promise l Three basic categories of firm: private firms, an intermediate category of smaller firms,4 and public firms; l Reasonable, scaled disclosure requirements; and l Specified secondary markets for the securities of these firms.5 The SEC needs to be reformed to achieve its important core functions more effectively, to improve transparency and due process, and to reduce unnecessary regulatory impediments to capital formation.6 Under current law, the SEC Chair- man has the authority to make almost all of the necessary changes.7 Unfortunately, financial regulators, particularly the SEC and the Financial Industry Regulatory Authority (FINRA), are poorly managed and organized. With regulatory authority delegated by the government, both the Public Company Accounting Oversight Board (PCAOB) and FINRA have proved to be ineffective, costly, opaque, and largely impervious to reform. To reduce costs and improve transparency, due process, congressional oversight, and responsiveness, PCAOB and FINRA should be abolished, and their regulatory functions should be merged into the SEC. Furthermore, Congress should establish an indepen- dent board or commission and charge it with producing a detailed report within 18 months that examines the degree to which the regulatory functions of the var- ious other so-called self-regulatory organizations (SROs), which are no longer self-regulatory in any meaningful sense, should be moved to the SEC.8 Discrimination based on immutable characteristics has no place in financial regulation. Offices at financial regulators that promote racist policies (usually in the name of “diversity, equity, and inclusion”) should be abolished, and regulations that require appointments on the basis of race, ethnicity, sex, or sexual orientation should be eliminated. Equal protection of the law, equal opportunity, and individ- ual merit should govern regulatory decisions.9 Congress has given the SEC broad “general exemptive authority,”10 but the SEC has used this authority only rarely. It should use this authority significantly more often to reduce the regulatory burden on issuers, particularly smaller entrepreneurs. ENTREPRENEURIAL CAPITAL FORMATION Financial regulators should remove regulatory impediments to entrepreneur- ial capital formation.11 In the absence of the fundamental reform outlined above, the SEC should: l Simplify and streamline Regulation A (the small issues exemption)12 and Regulation CF (crowdfunding)13 and preempt blue sky registration and quali- fication requirements for all primary and secondary Regulation A offerings.14 — 831 — Financial Regulatory Agencies l Either democratize access to private offerings by broadening the definition of accredited investor for purposes of Regulation D or eliminate the accredited investor restriction altogether.15 l Allow traditional self-certification of accredited investor status for all Regulation D Rule 506 offerings. l Exempt small micro-offerings from registration requirements.16 l Exempt small and intermittent finders from broker–dealer registration requirements and provide a simplified registration process for private placement brokers.17 l Exempt peer-to-peer lending from federal and state securities laws and reduce the regulatory burden on Regulation CF debt securities. l Make the Title I Emerging Growth Company (EGC) exemptions permanent for all EGCs. l Reduce the regulatory burden on small broker–dealers and exempt privately held, non-custodial broker–dealers from the requirements to use a PCAOB- registered firm for their audits. Congress should: l Amend the Internal Revenue Code to disregard crowdfunding and Regulation A shareholders for purposes of the 100-shareholder limit for Subchapter S corporations.18 BETTER CAPITAL MARKETS To improve capital markets, the SEC should: l Preempt blue sky registration, qualification, and continuing reporting requirements for securities traded on established securities markets (including a national securities exchange or an alternative trading system).19 l Terminate the Consolidated Audit Trail (CAT) program.20 l Abolish Rule 144 and other regulations that restrict securities resales and instead require a company that has sold securities to provide sufficient current informa- tion to the market to permit reasonable investment decisions and secondary sales.

Small Business Administration

Weak
Vector: 60%
Pages: 786-788AI Enhanced

AI Analysis:

"Both the bill and the Project 2025 SBA section aim to improve access to capital for underserved entities, but the bill focuses on banking regulatory relief for new and rural banks while the SBA section concerns disaster loans, religious eligibility, and SBIR/STTR programs, resulting only tangential overlap."

Key themes:access to capitalsmall business supportrural economic development

— 754 — Mandate for Leadership: The Conservative Promise Disaster Loan Program and Direct Lending. The SBA’s disaster loan pro- gram provides low-interest loans to personal, business, and nonprofit borrowers following a federally declared disaster. The program suffers from problems of coordination with Federal Emergency Management Administration (FEMA) disas- ter assistance. For example, disaster relief applicants have an incentive to avoid being approved for SBA disaster loans in order to increase the amount of FEMA assistance for which they are eligible. Moreover, the availability of disaster loans reduces individuals’ incentives to purchase disaster-related insurance. More than 90 percent of SBA disaster loans are loans to individuals such as homeowners, not to small businesses. In view of the challenges the SBA has experienced in its administration of this program, as well as the fraud and abuse in the EIDL COVID-19–related program and the IG’s concern that the systemic problems within this lending program undermine the SBA’s work, the next Administration should: l Work with Congress to assess the extent to which disaster loans should be offered by another agency rather than the SBA and explore private-sector channels for administering the loans. l Specify clearly that no new direct lending programs will be developed at the SBA. Eligibility of Religious Entities for SBA Loans. Current SBA regulations46 and SBA Form 197147 make certain religious entities ineligible to participate in several SBA loan programs. The Trump Administration proposed a rule that would remove the provisions on the ground that they violate the First Amendment.48 Subsequent Supreme Court decisions have made their unconstitutionality clearer.49 In an April 3, 2020, letter to Congress pursuant to 28 U.S. Code § 530D,50 the Trump Administration SBA advised that two such provisions violate the Free Exer- cise Clause of the First Amendment and that it therefore would not enforce them. On January 19, 2021, the Trump Administration SBA proposed a rule to remove all of the unconstitutional religious exclusions from its regulations.51 The SBA has not acted on the proposed rule. A similar religious exclusion once appeared in the regulation governing eligibil- ity for SBA Business Loan Programs,52 but it was removed in a June 2022 final rule that noted tension with the First Amendment and Supreme Court precedent.53 That final rule announced that the SBA would nonetheless continue to make religious eligibility determinations for business loan applicants to comply with putative Establishment Clause requirements,54 but Supreme Court precedent and Office of Legal Counsel memoranda refute the notion that large government-backed loan programs raise any Establishment Clause concerns.55 — 755 — Small Business Administration The SBA uses the same “Religious Eligibility Worksheet,” SBA Form 1971, to make eligibility determinations for all affected programs, including the Business Loan Programs. Thus, the SBA continues to act as though the unconstitutional regulation were still in place, and there is no Establishment Clause basis for doing so. The next Administration should immediately: l Notify Congress under 28 U.S. Code § 530D that it will not enforce these unconstitutional regulations. l Take down SBA Form 1971. l Finalize the Trump Administration’s proposed rule or publish its own updated proposed rule to remove the unconstitutional regulations. Small Business Innovation Research and Small Business Technology Transfer Programs. The SBA “coordinates and monitors the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) pro- grams for all federal agencies with extramural budgets for research or research and development (R/R&D) in excess of the expenditures established in sections 9(f) and 9(n) of the Small Business Act.”56 The SBIR and STTR Extension Act of 2022 extended these programs from September 30, 2022, through September 30, 2025.57 SBIR requires that 3.2 percent of spending by agencies with extramural R&D budgets of $100 million or more must be directed to small businesses. STTR allo- cates 0.45 percent of federal research spending to small firms.58 Research has shown that this small portion of federal R&D spending is disproportionately effective.59 The SBIR program has consistently demonstrated its ability to fund advanced technologies through to private-market viability and invests more in America’s heartland than venture capital invests.60 SBIR and STTR have overcome the tendency of federal contracting officers to deal only with large firms that are familiar to them and have the expertise and lobbying clout to navigate the federal procurement process. The next Adminis- tration should: l Continue the SBIR and SBTT programs as they successfully fund the next wave of technological innovation to compete with Big Tech. l Urge Congress to expand the amount that other agencies are required to set aside from their general R&D budgets for the SBIR program. l Ensure the enactment of stricter rules requiring that SBIR funds must be expended on capital investments in the United States.

Small Business Administration

Weak
Vector: 60%
Pages: 795-797AI Enhanced

AI Analysis:

"The bill focuses on banking regulations and new bank formation, while the Project 2025 policy excerpt centers on SBA loan programs, faith-based organization eligibility, and regulatory reform within the Small Business Administration. There is no direct connection between promoting de novo banks and SBA-specific initiatives like faith-based lending or disaster assistance programs."

Key themes:regulatory burden reductionsmall business access to capital

— 762 — Mandate for Leadership: The Conservative Promise 29. U.S. Small Business Administration, “Ensuring Equal Treatment for Faith-Based Organizations in SBA’s Loan and Disaster Assistance Programs,” Proposed Rule, Federal Register, Vol. 86, No. 11 (January 19, 2021), pp. 5036–5040, https://www.federalregister.gov/documents/2021/01/19/2021-00446/ensuring-equal-treatment- for-faith-based-organizations-in-sbas-loan-and-disaster-assistance-programs (accessed February 18, 2023). 30. President Joseph R. Biden Jr., Executive Order 14019, “Promoting Access to Voting,” March 7, 2021, in Federal Register, Vol. 86, No. 45 (March 10, 2021), pp. 13623–13627, https://www.govinfo.gov/content/pkg/ FR-2021-03-10/pdf/2021-05087.pdf (accessed February 19, 2023). See also press release, “Small Business Committee Republicans: The SBA Should Stay Out of Elections and Focus on Our Small Businesses,” Small Business Committee Republicans, Committee on Small Business, U.S. House of Representatives, April 4, 2022, https://republicans-smallbusiness.house.gov/news/documentsingle.aspx?DocumentID=404061 (accessed February 18, 2023). 31. Press release, “SBA Administrator Guzman, Biden–Harris Administration Announce Community Navigator Pilot Program Grantees,” U.S. Small Business Administration, October 28, 2021, https://www.sba.gov/ article/2021/oct/28/sba-administrator-guzman-biden-harris-administration-announce-community-navigator- pilot-program (accessed February 18, 2023). 32. John Reosti, “SBA Hasn’t Given Up on Direct Lending,” American Banker, May 2, 2022, https://www. americanbanker.com/creditunions/news/sba-hasnt-given-up-on-direct-lending (accessed February 18, 2023). 33. Goldman Sachs, 10,000 Small Businesses Voices, “22 Years Is Too Long: Support Small Businesses. Reauthorize the SBA,” Open Letter to Congress, November 16, 2022, https://www.goldmansachs.com/ citizenship/10000-small-businesses/US/voices/reauthorize-the-sba-letter/index.html (accessed February 18, 2023). According to Goldman Sachs, the letter “was published in Politico on Wednesday, November 16 to kick of a broader campaign to prioritize small businesses and modernize the SBA in the next Congress” and “was signed by over 3,000 small business owners from all 50 states.” Ibid. 34. See, for example, “Challenge 3: SBA Faces Significant Challenges in IT Investment, System Development, and Security Controls,” in U.S. Small Business Administration, Office of Inspector General, Top Management and Performance Challenges Facing the Small Business Administration in Fiscal Year 2023, Report 23-01, October 14, 2022, pp. 16–19, https://www.sba.gov/sites/default/files/2022-10/SBA%20OIG%20Report%2023-01_0.pdf (accessed February 18, 2023). 35. Ibid., p. iv. 36. Appendix M, “Office of Advocacy’s Legislative Priorities,” and Appendix Q, “Memorandum of Understanding Between the Small Business Administration and the Office of Advocacy,” in U.S. Small Business Administration, Office of Advocacy, Background Paper, Office of Advocacy, 2017–2020, January 2021, pp. 192 and 197, https://cdn.advocacy.sba.gov/wp-content/uploads/2021/02/09101916/Background-Paper-Office-of- Advocacy-2017-2020-web.pdf (accessed February 18, 2023). 37. President Donald J. Trump, Executive Order 13771, “Reducing Regulation and Controlling Regulatory Costs,” January 30, 2017, in Federal Register, Vol. 82, No. 22 (February 3, 2017), pp. 9339–9341, https://www.govinfo. gov/content/pkg/FR-2017-02-03/pdf/2017-02451.pdf (accessed February 19, 2023), and President Donald J. Trump, Executive Order 13777, “Enforcing the Regulatory Reform Agenda,” February 24, 2017, in Federal Register, Vol. 82, No. 39 (March 1, 2017), pp. 12285–12287, https://www.govinfo.gov/content/pkg/FR-2017-03- 01/pdf/2017-04107.pdf (accessed February 19, 2023). 38. U.S. Small Business Administration, Office of Advocacy, What Small Businesses Are Saying and What Advocacy Is Doing About It: Progress Report on the Office of Advocacy’s Regional Regulatory Reform Roundtables, June 2017–September 2018, December 2018, https://cdn.advocacy.sba.gov/wp-content/ uploads/2018/12/20091536/What-Small-Businesses-Are-Saying-What-Advocacy-Is-Doing.pdf April 2020, https://advocacy.sba.gov/regulatory-reform/ (accessed February 18, 2023December 10, 2022). See also U.S. Small Business Administration, Office of Advocacy, Reforming Regulations and Listening to Small Business: Second Progress Report on the Office of Advocacy’s Regional Regulatory Roundtables, June 2017–December 2019, https://cdn.advocacy.sba.gov/wp-content/uploads/2020/04/20141200/2nd-Progress-Report-on-Reg- Reform-Roundtables.pdf (accessed February 18, 2023). 39. U.S. Small Business Administration, Office of Advocacy, What Small Businesses Are Saying and What Advocacy Is Doing About It: Progress Report on the Office of Advocacy’s Regional Regulatory Reform Roundtables, June 2017–September 2018, pp. 32 and 43. — 763 — Small Business Administration 40. U.S. Small Business Administration, Office of Inspector General, Top Management and Performance Challenges Facing the Small Business Administration in Fiscal Year 2023, p. iv. 41. H.R. 748, CARES (Coronavirus Aid, Relief, and Economic Security) Act, Public Law No. 116-136, 116th Congress, March 27, 2020, https://www.congress.gov/116/plaws/publ136/PLAW-116publ136.pdf (accessed February 19, 2023). 42. Sarah McCammon, “Planned Parenthood Asked to Return Funds from Paycheck Protection Program,” NPR, May 21, 2020, https://www.npr.org/2020/05/21/859991359/planned-parenthood-asked-to-return-funds- from-paycheck-protection-program (accessed February 18, 2023). 43. Letter from William Manger, Associate Administrator, U.S. Small Business Administration, to Laura Meyers, Planned Parenthood of Metropolitan Washington, “Re: Notice of Investigation and Request for Records,” May 19, 2020, https://s3.documentcloud.org/documents/6922122/SBA-Letter-Planned-Parenthood-DC.pdf (accessed February 18, 2023). 44. Press release, “Lankford, HSGAC Republicans Demand Details on Illegal PPP Loans to Planned Parenthood Affiliates,” Office of U.S. Senator James Lankford, April 28, 2022, https://www.lankford.senate.gov/news/press- releases/lankford-hsgac-republicans-demand-details-on-illegal-ppp-loans-to-planned-parenthood-affiliates (accessed February 18, 2023). 45. Press release, “Romney, Colleagues Request Information from SBA Administrator Guzman on Illegal PPP Loans Given to Planned Parenthood Affiliates,” Office of U.S. Senator Mitt Romney, April 28, 2022, https:// www.romney.senate.gov/romney-colleagues-request-information-from-sba-administrator-guzman-on- illegal-ppp-loans-given-to-planned-parenthood-affiliates/ (accessed February 18, 2023). 46. 13 C.F.R. §§ 109.400(b)(11), https://www.law.cornell.edu/cfr/text/13/109.400; 123.301(g), https://www.law. cornell.edu/cfr/text/13/123.301; 123.502(n), https://www.law.cornell.edu/cfr/text/13/123.502; and 123.702(b)(6), https://www.law.cornell.edu/cfr/text/13/123.702 (all accessed February 19, 2023). 47. U.S. Small Business Administration, “Religious Eligibility Worksheet for all 7(a) and 504 Loan Programs” SBA Form 1971, http://www.sba.gov/sites/default/files/2020-11/sba-form-1971.pdf (accessed February 18, 2023). 48. U.S. Small Business Administration, “Ensuring Equal Treatment for Faith-Based Organizations in SBA’s Loan and Disaster Assistance Program.” 49. See, for example, Carson v. Makin, 596 U.S. ___ (2022), https://www.supremecourt.gov/ opinions/21pdf/20-1088_dbfi.pdf (accessed February 19, 2023). 50. 28 U.S. Code § 530d, https://www.law.cornell.edu/uscode/text/28/530D (accessed February 19, 2023). 51. U.S. Small Business Administration, “Ensuring Equal Treatment for Faith-Based Organizations in SBA’s Loan and Disaster Assistance Program.” 52. 13 CFR 120.110(k), https://www.law.cornell.edu/cfr/text/13/120.110 (accessed February 19, 2023). 53. U.S. Small Business Administration, “Regulatory Reform Initiative: Streamlining and Modernizing the 7(a), Microloan, and 504 Loan Programs to Reduce Regulatory Burden,” Final Rule, Federal Register, Vol. 87, No. 125 (June 30, 2022), pp. 38900–38910, https://www.federalregister.gov/documents/2022/06/30/2022-13483/ regulatory-reform-initiative-streamlining-and-modernizing-the-7a-microloan-and-504-loan-programs-to (accessed February 18, 2023). 54. Ibid. 55. U.S. Department of Justice, Office of Legal Counsel “Religious Restrictions on Capital Financing for Historically Black Colleges and Universities,” Memorandum Opinion for the Acting General Counsel, Department of Education, August 15, 2019, https://www.justice.gov/sites/default/files/opinions/ attachments/2021/01/01/2019-08-15-hbcu-capfin-2.pdf. (accessed February 18, 2023). 56. U.S. Small Business Administration, Office of Investment and Innovation, SBIR and STTR Annual Report, Fiscal Year 2019, p. 8, https://www.sbir.gov/sites/default/files/SBA_Final_FY19_SBIR_STTR_Annual_Report.pdf (accessed February 18, 2023). 57. S. 4900, SBIR and STTR Extension Act of 2022, Public Law No. 117–183, 117th Congress, September 30, 2022, https://www.congress.gov/117/plaws/publ183/PLAW-117publ183.pdf (accessed February 18, 2023). 58. U.S. Small Business Administration, Office of Investment and Innovation, SBIR and STTR Annual Report, Fiscal Year 2019, pp. 6, 40, and 108.

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Policy matches are calculated using a hybrid approach: initial candidates are found using semantic similarity between bill summaries and Project 2025 policy text, then an AI model (Llama 3.1 70B) provides detailed alignment ratings and analysis. Ratings range from 1 (minimal alignment) to 5 (very strong alignment). This analysis does not imply direct causation or intent.

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