Partnering for Prosperity: Beatty Boosts Small Financial Institutions Nationwide

WASHINGTON, D.C. – Today, Congresswoman Beatty reintroduced H.R. 3709 the ‘Advancing the Mentor Protégé Program for Small Financial Institutions Act’ to codify the Financial Agent Mentor-Protégé Program at the U.S. Department of the Treasury. The program pairs up small and rural financial institutions with large banks and credit unions, providing resources, training, and technical assistance to help them better serve their communities and become Financial Agents to Treasury.

Small financial institutions, including Minority Depository Institutions (MDIs), play a critical role in their communities, yet there are only 151 MDI banks left in the United States, and the number of minority-owned banks has dropped more than 30% since its peak in 2008. Although their numbers have largely stabilized in recent years, MDIs generally have much higher expenses and are often forced to merge with other minority-owned banks to survive.

“Small financial institutions are anchors of local economies across the U.S., providing mortgage credit, small business lending, and other critical banking services to their communities ,” said Congresswoman Beatty. “These institutions know the financial needs of their communities best, and codifying the mentor-protégé program at Treasury will go a long way toward preserving and strengthening their impact across America —and advancing our mission of an inclusive financial system.”

“The Independent Community Bankers of America (ICBA) is pleased to support Congresswoman Joyce Beatty’s Advancing the Mentor-Protégé Program for Small Financial Institutions Act, which would establish a Treasury Financial Agent program enabling partnerships between MDIs, rural community banks, and other financial institutions,” said Rebeca Romero Rainey, ICBA President and CEO. “This legislation reinforces and supports the critical role MDIs and rural community banks serve as a lifeline in their communities, providing tailored financial products, and fostering greater economic growth.”

“The American Bankers Association is pleased to support Rep. Beatty’s Advancing the Mentor Protégé Program for Small Financial Institutions Act, which would increase the ability of community banks, rural financial institutions and MDIs to meet the financial service needs of their customers, clients and communities,” said Rob Nichols, ABA President and CEO. “By strengthening partnerships between large banks and these community financial institutions with the help of the Treasury Department, this bill will provide significant benefit to consumers across the country and the broader economy.”

“The National Bankers Association (NBA) proudly supports Congresswoman Joyce Beatty’s Advancing the Mentor Protégé Program for Small Financial Institutions Act, which takes a critical step toward strengthening small, mission-driven banks,” said Nicole Elam, President and CEO of the NBA. “This legislation builds on existing Treasury efforts by expanding the scope of support for Minority and Rural Depository Institutions—ensuring they have greater access to federal resources and opportunities. Through the establishment of a Financial Agent Mentor-Protégé Program, larger financial institutions will be able to mentor and support small, mission-driven banks in enhancing their operational capacity, deepening community impact, and qualifying to serve as financial agents of the U.S. government.”

“America's Credit Unions applauds Rep. Joyce Beatty's efforts to promote programs that support minority depository institution (MDI) credit unions and other credit unions.  We are pleased to see the reintroduction of the Advancing the Mentor Protégé Program for Small Financial Institutions Act. This bill would empower MDI and other smaller credit unions to collaborate with larger credit unions in these mentorship efforts. This builds on the credit union culture of ‘people helping people’ and working cooperatively to ensure the success of communities they serve,” said Jim Nussle, America's Credit Unions President/CEO.

The full bill text can be found HERE.

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