H.R. 6328: Main Street Home Builders Act of 2025

The Main Street Home Builders Act of 2025 aims to create a new pilot program under the Small Business Administration (SBA) called the "505 Pilot Program." This program is designed to provide financial assistance to small businesses involved in the construction and management of build-to-rent multifamily housing. Here's a breakdown of what the bill proposes:

Pilot Program Overview

The 505 Pilot Program will enable the SBA to issue loans to state development companies, specifically targeting projects that:

• Construct, refurbish, expand, or improve build-to-rent multifamily housing.
• Manage such build-to-rent multifamily housing.

Classification of Participants

Individuals or businesses participating in this program will not be considered speculative or passive businesses. This classification may facilitate access to funding and reduce regulatory burdens typically associated with these types of businesses.

Loan Conditions

Loans under the 505 Pilot Program will be available following the same conditions as loans made under the Small Business Investment Act of 1958. However, projects funded through this program will:

• Not be subject to specific job creation requirements.
• Not face certain limitations on leasing projects, which could ease operational flexibility.

Lender Requirements

Before approving loans, lenders will be required to conduct due diligence to confirm that:

• The applicant will be the end user of the project.
• The applicant has a successful track record in constructing or managing similar properties.
• The applicant possesses adequate financial resources to manage the project effectively.

Project Requirements

Projects funded under this program will need to meet the following criteria:

• For new constructions, the project must create at least one more dwelling unit than what existed prior to development.
• For renovation or reconstruction projects, at least one additional dwelling unit must be created compared to the existing facility.

Funding Allocation

The bill outlines how much funding is allocated for this pilot program over several fiscal years:

• Fiscal Year 2026: $1 billion
• Fiscal Year 2027: $2 billion
• Fiscal Years 2028-2030: $3 billion each year

Program Duration

The authority to operate this pilot program will last for five years after the bill is enacted, after which it may be evaluated for its effectiveness and potential continuation.

Definitions

Key terms defined in the bill include:

• Build-to-rent multifamily housing: Housing constructed to be rented or leased.
• Covered person: A small business involved in the construction or management of multifamily housing.
• Dwelling unit: A residential unit for individuals or families.
• Multifamily housing: A facility that includes more than one dwelling unit.

Relevant Companies

None found.