Beatty’s Bill to Boost Small Financial Institutions Nationwide Passes Unanimously

WASHINGTON, D.C. - Today, Congresswoman Beatty's bill, H.R. 3709(link is external) the 'Advancing the Mentor Protégé Program for Small Financial Institutions' Act unanimously passed the House of Representatives and now awaits Senate passage. This legislation was included in the House-passed bipartisan Housing for the 21st Century Act, which aims to increase housing supply, prioritize affordability, and advance housing equity.

This critical legislation will codify the Financial Agent Mentor-Protégé Program at the U.S. Department of the Treasury; a program that 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 serve as the backbone of local economies nationwide, delivering essential resources like mortgage credit, small business capital, and trusted banking services that help neighborhoods thrive," said Congresswoman Joyce Beatty."These institutions know the people they serve best and they are uniquely positioned to understand and respond to local financial needs. Formally establishing the Department of Treasury's Mentor-Protégé Program will strengthen economic opportunity in communities across the country and move us closer to a more equitable and inclusive financial system for all Americans."

The Advancing the Mentor Protégé Program for Small Financial Institutions Act has garnered support from multiple banking organizations, including the Independent Community Bankers of America (ICBA), American Bankers Association (ABA), America's Credit Unions (ACU), and National Bankers Association (NBA).

The full bill text can be found HERE(link is external).

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