Senator Doug Jones Introduces Legislation to Encourage Investments in Banks that Serve Minority Communities

Press Release

U.S. Senator Doug Jones of Alabama today introduced legislation to encourage investments in financial institutions that serve minority communities.

The bill would help increase investments by changing current rules to allow minority-owned banks, community banks with under $1 billion in deposits, and Community Development Financial Institutions (CDFIs) to accept brokered deposits, or investments with high interest rates, which would bolster these institutions and encourage them to invest and lend in their communities. It also allows low-income and minority credit unions to access the NCUA's Community Development Revolving Loan Fund.

"One of the biggest hurdles for minority entrepreneurs is access to capital," said Senator Jones, a member of the Senate Banking Committee. "That's why this bill is so important. Increasing access to capital at the banks that serve minority communities will help expand financial opportunities for individuals and business owners in those communities."

"Commonwealth National Bank would like to thank Senator Jones for his leadership in introducing theMinority Depository Institution and Community Bank Deposit Access Act. As a small Alabama home grown institution, this proposal will allow us to accept needed deposits without the current limitations that hinder our ability to better serve the historically underserved communities that our institutions were created to serve. We support your efforts and encourage you to keep fighting the good fight for all of America," said Sidney King, President and CEO, Commonwealth National Bank.

"The Minority Depository Institution and Community Bank Deposit Access Act is a welcomed first step in helping Minority Depository Institutions like our National Bankers Association member banks develop the kinds of national deposit networks that allow our institutions to compete for deposits with larger banks and to better meet the credit needs of the communities we serve. The National Bankers Association commends Senator Jones' leadership on this issue, and we look forward to continuing to engage with him on the ultimate passage of this proposal," said Kenneth Kelly, Chairman, National Bankers Association.

During his time in the Senate, Senator Jones has been an advocate for minority-serving financial institutions. In April, he urged the Federal Reserve and the U.S. Treasury to take emergency measures to support CDFIs and minority-owned banks that have been disproportionately affected by the COVID pandemic. He also supported efforts to negotiate additional funds for small community banks, minority-owned banks, and CDFIs in the recent Paycheck Protection Program (PPP) replenishment, giving small businesses and minority business owners better access to the PPP program through small community banks and CDFIs.

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