The U.S. House of Representatives passed unanimously the Expanding Opportunity for Minority Depository Institutions Act, H.R. 5315. Introduced by U.S. Congresswoman Joyce Beatty (OH-03), H.R. 5315 would codify 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 passage, Beatty said:
“Minority-owned banks play a vital role in our economy, providing customers the necessary resources to start a business, achieve their dreams of homeownership, and even save for retirement. Yet, too many minority-owned banks are closing up shop. My bill will reverse this troubling trend by providing support and guidance for minority-owned banks so that they can continue to meet the unique needs of their customers, and at the same time create more pathways for minority Americans to open their very own business, buy a home, plan for the future, and much more.”
According to the 2019 Federal Deposit Insurance Corporation Report on Minority Depository Institutions, minority-owned banks originate a greater share of mortgages and 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.
Prior to the vote on the Minority Depository Institutions Act, Beatty spoke from the House Floor about the bill’s positive effects on consumers and communities across the country. An archived recording of Beatty’s full remarks can be viewed on her YouTube page.
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