HR6328-119

What This Bill Does

The Main Street Home Builders Act of 2025 creates a five-year 505 Pilot Program inside the SBA title V lending framework. SBA would make loans to State development companies so they can assist covered small businesses that construct, refurbish, expand, improve, and manage build-to-rent multifamily housing. The bill overrides two common SBA barriers for these projects: participating businesses may not be treated as speculative or passive businesses, and pilot projects are exempt from title V job-creation requirements and limitations on leasing assisted property. SBA-backed lenders must still perform due diligence confirming that the borrower will be the end user, has a track record constructing or managing build-to-rent multifamily housing, and has adequate assets. Each project must add at least one dwelling unit, whether through new construction or acquisition and renovation. The pilot can use up to 1 billion dollars in FY2026, 2 billion dollars in FY2027, and 3 billion dollars in each of FY2028 through FY2030 before terminating five years after enactment.

Who Benefits and How

Small business home builders benefit because the bill opens SBA title V financing for build-to-rent multifamily projects that existing rules might treat as speculative, passive, or too lease-oriented. State development companies gain a new lending channel and more eligible projects. Renters benefit if the pilot increases the supply of multifamily dwelling units. SBA lenders benefit from additional loan volume, although they must document borrower capacity and end-use status.

Who Bears the Burden and How

The Small Business Administration must administer a large new housing-credit pilot and monitor statutory caps through fiscal year 2030. Lenders must run due diligence on borrower experience, assets, and end-user status. Federal taxpayers carry added credit risk if assisted build-to-rent projects underperform. Builders that cannot show a successful track record or that fail to add at least one dwelling unit remain excluded.

Key Provisions

• Establishes a five-year SBA 505 Pilot Program for build-to-rent multifamily housing.
• Authorizes loans through State development companies for construction, rehabilitation, expansion, improvement, and management of rental multifamily projects.
• Provides exemptions from speculative-business, passive-business, job-creation, and leasing-limit barriers that otherwise apply under SBA title V rules.
• Requires lender due diligence on borrower end-use status, track record, and assets.
• Limits program use to 1 billion dollars in FY2026, 2 billion dollars in FY2027, and 3 billion dollars annually from FY2028 through FY2030.