Expanding Opportunity for Minority Depository Institutions Act

Floor Speech

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Mrs. BEATTY. Madam Speaker, first, let me start by thanking the chair of the Committee on Financial Services, Congresswoman Maxine Waters, for allowing me to bring this bill before the committee and for her support.

Also, I thank the rest of the members on the Financial Services Committee for supporting this bill and moving the bill out of committee unanimously with a vote of 57-0.

Madam Speaker, I also thank my colleague, Congressman Hill, for his words and his support on this very important piece of legislation.

My bill, the Expanding Opportunity for Minority Depository Institutions Act, H.R. 5315, would formally establish and codify the United States Department of Treasury's Financial Agent Mentor-Protege program into law. This mentorship program was established by the Treasury Department under the Office of Minority and Women Inclusion, otherwise known as OMWI, to facilitate the program.

The relationship between minority-owned banking institutions and larger banks--which is very important and key to this piece of legislation--helps minority-owned banks improve their capacity to better serve their communities and their customers. At the same time it allows larger banks the opportunity to expand their network and facilitate potential subcontracting relationships with their proteges as well as receive credit under the Community Reinvestment Act.

I am talking about a win-win, Madam Speaker, for everyone, especially the communities served by these minority-owned banks who have been hurt the most since the dramatic decline in the number of these institutions during the financial crisis of 2008, which has left many communities of color unbanked and underbanked.

While there are no minority-owned banks in the State of Ohio where my district is, this bill could help change that calculus. I know because I remember when we had a minority-owned bank not far from my district in Dayton, Ohio.

Madam Speaker, focusing on this important issue will allow Congress to stand up and get something done, especially for African Americans and other minorities who find themselves unbanked or underbanked. Congress needs to incentivize and formally establish programs such as this to turn around this downward trend because minority-owned banks have a history of making a difference in the communities.

Let me just give you an example, Madam Speaker. Just a few years ago the FDIC surveyed my district, Columbus, Ohio, and reported that 25.2 percent of those in that district were either unbanked or underbanked.

Also, I wanted to be able to say that the Main Street financial institutions that provide mortgage and small business loans to communities are often unbanked and underbanked. Just ask African Americans right here in Washington, D.C., what it means to them.

Finally, let me say, in fact, minority-owned banks originate a greater share of mortgages and Small Business Administration 7(a) loans to borrowers in low- and moderate-income areas than nonminority-owned banks. They also originate a greater share of loans to minorities in general than nonminority-owned banks.

That is why, Madam Speaker, it is so important for Congress to pass this bill to formally establish the Treasury Department's mentor- protege program so that minority-owned financial institutions can receive resources, as you have heard Congressman Hill say, and training and technical assistance, as Congresswoman Maxine Waters has mentioned, from larger financial institutions to better serve their community and their customers.

Madam Speaker, I am asking my colleagues to support this opportunity for this program and for H.R. 5315 to become law.

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