Chicago Sun-Times - All | Small businesses, banks will lose out under proposed bill by Ben Jealous

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The article argues that the proposed Main Street Depositor Protection Act, which would allow the FDIC to raise its insurance limit for non‑interest‑bearing business checking accounts from $250,000 to as much as $5 million, primarily benefits the largest depositors at the nation’s biggest banks rather than true Main‑Street firms. Because the current $250K cap already covers 99 percent of accounts and the average small business keeps only about $12,000 in its account, the dramatic increase would impose higher insurance costs on banks, prompting them to lend less. That reduction in credit would hit the very small businesses and minority‑owned enterprises that already face high loan denial rates, worsening economic inequality. While the bill offers a temporary reprieve for community banks under $10 billion, the broader impact would be higher borrowing costs and fewer loans, making it a counter‑productive way to support Main Street. The author, Ben Jealous, suggests that real help should come from easier, fairer lending and investment in neglected neighborhoods rather than expanding deposit insurance.

Read more: https://chicago.suntimes.com/columnists/2026/04/28/banks-small-businesses-fdic-main-street-depositor-protection-act-ben-jealous

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