The Main Street Capital Access Act: A Blueprint for Community Banking

The Main Street Capital Access Act (H.R. 6955) is a newly proposed bill in the U.S., representing the most comprehensive overhaul of community bank regulation in over a decade. Introduced by House Financial Services Committee Chairman French Hill and Financial Institutions Subcommittee Chairman Andy Barr, this landmark legislation aims to revitalize local bank formation and reduce the regulatory burden on community and regional banks while maintaining rigorous safety and soundness standards.
 

Supervisory Modifications for Appropriate Risk-Based Testing: Provides targeted regulatory relief for well-managed and well-capitalized financial institutions with assets under $6 billion through alternating limited-scope examinations and combined examination options (safety/soundness, IT/cybersecurity and consumer compliance). 

Tailored Regulation: Raises asset thresholds so fewer banks face the strictest rules. It boosts the Small Bank Holding Company threshold from $3 billion to $25 billion and raises the upper limit of banks eligible for the simple leverage ratio from $10 billion to $15 billion (and lowers the CBLR range to 6–8%). It also ties regulatory triggers (such as stress test or resolution requirements) to GDP growth, ensuring that the rules “grow” with the economy. Importantly, regulators are instructed to consider each institution’s actual risk profile and business model when issuing new rules or taking supervisory action.

Leverage Ratios: The legislation lowers the Community Bank Leverage Ratio (CBLR) for rural community banks to 7.5% and proposes a short-form call report for all banks eligible for the community bank leverage ratio. 

Halting Uncertain Methods and Practices in Supervision:  Requires the Federal Financial Institutions Examination Council (FFIEC) to establish clear, objective criteria for CAMELS ratings, eliminating subjective examiner judgment, which has led to inconsistent ratings across similar institutions. The CAMELS (Capital Adequacy, Asset Quality, Management Capability, Earnings, Liquidity, Sensitivity to Market Risk) rating is a supervisory rating system originally developed in the U.S. to classify a bank's overall condition. It's applied to every bank and credit union in the U.S. and failed institutions are resolved through formal processes to protect depositors.

In summary, the Main Street Act is a sweeping community-bank reform bill that cuts red tape; it promotes de novo banks, tailors capital and exam rules to bank size, enforces quicker approvals and enhances funding options. Many provisions specifically target community banks’ concerns, such as easing capital and deposit rules for smaller lenders.
 

The Main Street Capital Access Act creates a tiered approach to regulatory relief that directly benefits institutions across the community and regional banking spectrum while addressing systemic concerns about banking concentration.

Financial Institutions:

• Community banks (under $10 billion) serving local and regional markets
• Regional banks ($10-25 billion) operating across multiple states
• Rural depository institutions facing unique challenges in underserved markets
• Consumers and small businesses in banking deserts gaining improved access to financial services
• Bank holding companies below the new thresholds avoiding complex consolidated supervision

Regulatory Agencies:

• The Act also focuses on regulatory bodies, requiring them to streamline oversight and reduce redundant compliance burdens, which, in turn, affects lenders by lowering operational costs. 

H.R. 6955 was newly introduced this month, and it must now go through the legislative process: committee review, House vote, Senate vote and presidential signature. The Financial Services Committee has already held multiple hearings on related topics during 2025, so a markup could happen soon. Regulatory agencies are expected to review the details of the Act and clarify how and when filing requirements will change. This is expected to be published no later than June 2026. 
 

The Main Street Capital Access Act creates both opportunities and compliance challenges that require sophisticated regulatory technology solutions. Nasdaq AxiomSL's comprehensive platform is uniquely positioned to help banks capitalize on regulatory relief while maintaining robust compliance infrastructure.
 

AxiomSL Solution: The ControllerView platform enables institutions to:

• Seamlessly transition between full Call Report filings and short-form reporting based on real-time eligibility determinations
• Automatically calculate CBLR under the new 6-8% range and $15 billion threshold
• Generate regulatory reports that adapt to changing eligibility status without manual intervention
• Maintain comprehensive audit trails demonstrating compliance with simplified reporting criteria and grace period provisions

AxiomSL Solution: Enhanced Data Management in the platform provides:

• Real-Time CAMELS component monitoring against the new objective benchmarks mandated by FFIEC, with what-if scenarios
• Examination readiness dashboards that compile all factual information needed to support supervisory ratings under the reformed system
• Automated material supervisory determination tracking with appeals process management under the new Office of Independent Examination Review

AxiomSL Solution: The Capital Planning and Stress Testing modules deliver:

• Dynamic threshold monitoring that automatically adjusts for GDP-indexed regulatory categories
• Multi-Scenario stress testing frameworks scalable from community banks to Category IV institutions
• Capital buffer optimization under both traditional risk-based and simplified CBLR frameworks
• Innovation sandbox management for institutions exploring new partnership models
• Regulatory reporting consolidation for all funding sources and liquidity facilities

The Main Street Capital Access Act represents more than regulatory relief—it is a fundamental recalibration of banking regulation that recognizes the vital role community banks play in American economic life. 

Nasdaq AxiomSL stands ready to partner with financial institutions throughout this transformation. Our proven regulatory technology platform, trusted by hundreds of institutions worldwide, provides the automation, transparency and scalability necessary to thrive under the new regulatory paradigm. Institutions that proactively prepare for these changes—leveraging technology solutions like AxiomSL to optimize their regulatory operations—will be best positioned to capitalize on the Main Street opportunity and drive sustainable growth in the years ahead.
 

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