Main Street Home Builders Act of 2025

This bill establishes a new pilot program within the Small Business Administration (SBA), known as the 505 Pilot Program , to facilitate the construction and management of build-to-rent multifamily housing. The program will provide loans to State development companies, which will then assist eligible small businesses in projects to construct, refurbish, expand, improve, or manage these housing units. This initiative aims to increase the supply of rental housing by supporting small business involvement. A key feature of the 505 Pilot Program is that participating small businesses will not be considered speculative or passive, which often limits access to traditional SBA loans. Furthermore, projects funded under this program will be exempt from standard job creation requirements and certain limitations on leasing that typically apply to Title V loans. This provides greater flexibility for developers focused on rental housing. Lenders are required to perform due diligence, verifying that the small business is the end user, has a successful track record, and possesses sufficient assets for the project. Each project must also result in the creation of at least one additional dwelling unit. The program is funded through existing SBA Title V appropriations, with specific annual caps: $1 billion for fiscal year 2026, $2 billion for 2027, and $3 billion for each of fiscal years 2028 through 2030. The authority for this pilot program will conclude five years after the bill's enactment.