Serving my community in the Georgia State House has been the greatest honor of my career. Every day, I work to improve the lives of my neighbors and to support small businesses in our communities. However, advocating for my constituents does not stop at the State House. It includes supporting initiatives that I know will positively impact my community’s economic wellbeing.
The proposed merger between Capital One and Discover, bolstered by Capital One’s $265 billion Community Benefits Plan (CBP) in one of those initiatives. This plan promises transformative investments that will greatly benefit our communities, particularly in areas that have historically been underserved by traditional financial institutions. I witness the aspirations of entrepreneurs in my district and city who face barriers in building and sustaining their businesses.
It is no secret that access to credit is a cornerstone of economic mobility in America. Unfortunately, people from underserved communities often struggle to access affordable credit options due to having low credit scores or no credit history at all. Unlike many other financial institutions, Capital One has a track record of successfully serving these communities.
Capital One ranks first among larger banks when it comes to serving low- and moderate-income (LMI) communities, with one-third of their branches being located in LMI neighborhoods. Moreover, they have pioneered credit cards for borrowers who are building or rebuilding credit. As of March 2024, 69 percent of Capital One customers who started with a subprime credit score achieved a prime credit score of 660 or higher. This is major.
Similarly, Discover is also known for bringing people who lack established credit histories into the fold. A combined Capital One-Discover bank could capitalize on their shared resources to further expand access to credit to underserved communities, giving more people the opportunity to build or repair their credit so that they can secure a mortgage or apply for small business loans.
In addition to the benefits of the merger, the CBP that comes with it will be transformative for underserved communities and small businesses in Georgia. I am particularly excited that this plan commits $15 billion in lending for small businesses in LMI communities and $5 in spending with diverse suppliers.
This will be a game-changer for Georgia, where 30 percent of businesses are Black-owned, empowering them to secure more contracts that may otherwise be out of reach and giving them the resources to invest in their businesses so they can continue to create jobs.
The CBP will also support small businesses and marginalized communities in our state by investing $600 million in Community Development Financial Institutions (CDFIs). Consumers and small businesses, especially those in LMI communities, rely on CDFIs to access the financial services they need to succeed. With this investment, the CDFIs in Georgia will be better equipped to serve the small businesses that depend on them to succeed.
These are investments that our communities need. By collaborating with organizations that have a vested interest in the wellbeing of our communities, including the Woodstock Institute and Opportunity Finance Network (OFN), I am hopeful that they will reach the communities that need them most.
By approving this merger and unleashing the CBP, regulators can make sure that more people have the opportunity to access credit, build wealth, start businesses, and chase their American dream. Our communities need bold and ambitious solutions that address our needs. This merger and the CBP will do just that.
