Advancing the Mentor-Protege Program for Small Financial Institutions Act

Floor Speech

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Mr. HILL of Arkansas. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3709) to amend the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 to establish a Financial Agent Mentor-Protege Program within the Department of the Treasury, and for other purposes, as amended.

The Clerk read the title of the bill.

The text of the bill is as follows: H.R. 3709

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.

This Act may be cited as the ``Advancing the Mentor-Protege Program for Small Financial Institutions Act''. SEC. 2. ESTABLISHMENT OF FINANCIAL AGENT MENTOR-PROTEGE PROGRAM.

(a) In General.--Section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note) is amended by adding at the end the following new subsection:

``(d) Financial Agent Mentor-Protege Program.--

``(1) In general.--The Secretary of the Treasury shall establish a program to be known as the `Financial Agent Mentor-Protege Program' (in this subsection referred to as the `Program') under which a financial agent designated by the Secretary or a large financial institution may serve as a mentor, under guidance or regulations prescribed by the Secretary, to a small financial institution to allow such small financial institution--

``(A) to be prepared to perform as a financial agent; or

``(B) to improve capacity to provide services to the customers of the small financial institution.

``(2) Outreach.--The Secretary shall hold outreach events to promote the participation of financial agents, large financial institutions, and small financial institutions in the Program at least once a year.

``(3) Exclusion.--The Secretary shall issue guidance or regulations to establish a process under which a financial agent, large financial institution, or small financial institution may be excluded from participation in the Program.

``(4) Report.--The Secretary shall report to Congress information pertaining to the Program, including--

``(A) the number of financial agents, large financial institutions, and small financial institutions participating in such Program; and

``(B) the number of outreach events described in paragraph (2) held during the year covered by such report.

``(5) Definitions.--In this subsection:

``(A) Financial agent.--The term `financial agent' means any national banking association designated by the Secretary of the Treasury to be employed as a financial agent of the Government.

``(B) Large financial institution.--The term `large financial institution' means any entity regulated by the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, or the National Credit Union Administration that has total consolidated assets greater than or equal to $50,000,000,000.

``(C) Rural depository institution.--The term `rural depository institution' means a depository institution (as defined in section 3 of the Federal Deposit Insurance Act)--

``(i) with total consolidated assets of less than $10,000,000,000; and

``(ii) located in a rural area, as defined under section 1026.35(b)(2)(iv)(A) of title 12, Code of Federal Regulations.

``(D) Small financial institution.--The term `small financial institution' means--

``(i) any entity regulated by the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, or the National Credit Union Administration that has total consolidated assets lesser than or equal to $2,000,000,000;

``(ii) a minority depository institution; or

``(iii) a rural depository institution.''.

(b) Effective Date.--This Act and the amendments made by this Act shall take effect 90 days after the date of the enactment of this Act.

I rise in support of Congresswoman Joyce Beatty's bill, the Advancing the Mentor-Protege Program for Small Financial Institutions.

Small financial institutions, as we have discussed this afternoon, play a vital role in providing financial services to our families and our small businesses across our communities that often lack robust access to financial products and services, particularly outside our urban areas.

Yet, over the last few decades, we have seen a steady decline in the number of these vital smaller institutions threatening access to mortgages for American families and important capital access for small business development or agricultural loans for our family farmers.

Representative Beatty's bipartisan legislation helps ensure that smaller banks and credit unions remain viable by formally codifying the Financial Agent Mentor-Protege Program within the United States Department of the Treasury.

Since 2018, the Department of the Treasury has launched the program to strengthen partnerships between the Nation's largest banks and some of our smallest financial institutions across our land. This program pairs small and rural financial institutions with larger banks and credit unions, giving them access to resources, training, and technical assistance so that they can better serve their communities and better position themselves to qualify to serve as financial agents to the Treasury.

By codifying this initiative, we strengthen community banks, credit unions, and rural banks, expanding access to responsible financial services and ensuring that more small institutions have the capacity to partner with the Federal Government on crucial financial operations.

I thank the gentlewoman from Ohio (Mrs. Beatty), for her leadership on this critical issue.

Mr. Speaker, I include in the Record the CBO estimate for this bill. EFFECTS ON DIRECT SPENDING AND REVENUES OF LEGISLATION -------------------------------------------------------------------------------------------------------------------------------------------------------- Additional Effect on Direct Information on Direct Link to Published Bill Number Title Spending Effect on Revenues Spending and Revenue Estimates Effects -------------------------------------------------------------------------------------------------------------------------------------------------------- H.R. 3709.......................... Advancing the Mentor- Increase by Less Than None................. N/A.................. N/A Protege Program for $500K. Small Financial Institutions Act, as amended. -------------------------------------------------------------------------------------------------------------------------------------------------------- Source: Congressional Budget Office.

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Mr. HILL of Arkansas. Mr. Speaker, I urge all Members on both sides of the aisle to support Congresswoman Beatty's good bill. It really helps so many of these small institutions that just don't have the capacity building to cope with some of the things that we have talked about on the House floor today in terms of the compliance burden and requirements they have to be successful.

If we really want to help our smallest institutions do that, they have to have a peer network. They have to have expertise in some select areas to enhance their ability to serve not only the Department of the Treasury's needs but just to run a more successful financial institution and to be able to grow it and serve their communities.

This peer mentorship program is one that, since 2018, we have seen support for and seen success with. I thank the gentlewoman from Ohio (Mrs. Beatty) for urging that it be codified.

Mr. Speaker, I encourage Members on both sides to pass Mrs. Beatty's bill, and I yield back the balance of my time.

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