Beatty Bipartisan Minority Banking Bill Passes House Financial Services Committee
WASHINGTON, D.C.—Today, the House Committee on Financial Services passed unanimously (57-0) the Expanding Opportunity for Minority Depository Institutions Act, H.R. 5315. Introduced by U.S. Congresswoman Joyce Beatty (OH-03), H.R. 5315 would make permanent the U.S. Department of Treasury’s Financial Agent Mentor-Protégé Program that helps pair minority-owned banks with financial agents to expand business and consumer products. Following the Committee vote, Beatty said:
“Minority-owned banks play a vital role in our economy, providing their customers the resources to start their own businesses, achieve their dreams of homeownership, or even save for retirement. However, we have seen many minority-owned banks that were once community pillars close up shop. My bill will provide support and guidance for minority-owned banks so that they can continue to meet the often-unmet needs of communities of color.”
According to the 2019 Federal Deposit Insurance Corporation Report on Minority Depository Institutions, minority-owned banks originate a greater share of mortgages and a greater share of Small Business Administration (SBA) 7(a) loans to borrowers in low- to moderate-income census tracts than non-minority-owned banks. In addition, they also provide a greater share of reported loans to minority Americans than non-minority-owned financial institutions.
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