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Bill

HB 798

Economic Development - Small, Minority, and Women-Owned Business Accounts - Management Fees (Small Business Increased Access to Capital Act)

2026 Regular Session Introduced by Sarah Wolek

HB 798 regulates management fees on small, minority, and women-owned business accounts to increase affordable access to capital and financial services for underrepresented entrepreneurs.

Passed Enrolled
0
WeVote Research Nonpartisan
Bill Summary · HB 798

Legislative bill overview

HB 798 addresses management fees charged to small, minority, and women-owned business (SMWOB) accounts, likely aiming to reduce or regulate these fees to lower barriers to capital access. The bill is framed as increasing access to capital for underrepresented business owners by making banking or financial services more affordable. Specific provisions will be clarified at the scheduled hearing on February 24, 2026.

Why is this important

Small, minority, and women-owned businesses often face higher borrowing costs and stricter lending conditions than established firms, limiting growth opportunities. Management fees can represent a significant ongoing expense for smaller accounts with lower balances, effectively pricing out entrepreneurs with limited initial capital. Reducing these fees could meaningfully increase competitiveness and access to financial services for underrepresented business groups.

Potential points of contention

  • Financial institution impact: Banks and financial services firms may argue that lower fee structures reduce profitability and could lead to reduced services or higher minimum account requirements, potentially harming the intended beneficiaries
  • Definition and scope: Disagreement may arise over which businesses qualify as SMWOB, how eligibility is verified, and whether requirements create administrative burdens
  • Market effects: Critics might contend that fee regulation interferes with market competition and that alternative approaches (tax credits, grants) would be more efficient than mandated fee structures

Compiled from official sources — confirm details with the bill’s official record.

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