Op-Ed by Lucas County Commissioner Anita Lopez
Here in Lucas County, I’ve made it my mission to bring opportunities back to our region. As County Commissioner, I work hard every day to ensure our community has all of the resources necessary to succeed, so that together, we can create a robust local economy. The proposed Capital One-Discover merger and its accompanying Community Benefits Plan (CBP) does just that. It invests in communities like ours with a special focus on those who have been historically underserved by banking institutions.
We’ve seen firsthand how access to credit can transform lives and neighborhoods. Many of our minority-owned businesses struggle to secure the financing they need to grow and create jobs. Capital One has demonstrated its commitment to addressing this gap – they lead major banks in serving low- and moderate-income (LMI) communities, with one-third of their branches in these neighborhoods. This commitment to accessibility is crucial for our local entrepreneurs who often find themselves shut out of traditional financial institutions.
Capital One’s track record in helping customers build credit is particularly important for our community. Their data shows that 69% of customers who started with subprime credit scores have successfully elevated their scores to prime levels of 660 or above. This kind of progress is essential for minority entrepreneurs who often need strong personal credit to secure business loans and grow their enterprises.
Additionally, the merger will spur greater, much needed competition in the credit card industry. Capital One’s ability to issue cards over Discover’s payment network will force all major players to step up. It will lead to better terms for consumers and more favorable processing fees for merchants – particularly benefiting small businesses like those here in Lucas County.
On top of that, the merger’s bold Community Benefits Plan (CBP) will do even more for Lucas County’s small businesses. The CBP commits $15 billion to small business lending, which will help bolster our local economy. This funding will provide crucial support to minority entrepreneurs who often face systemic barriers when seeking traditional financing. Additionally, the plan’s $5 billion commitment to diverse suppliers will create new opportunities for local businesses to secure larger contracts and expand their operations. This means more small businesses, more jobs, and increased wealth in neighborhoods that have historically been left behind.
The CBP also includes a major investment into Community Development Financial Institutions (CDFIs) as an essential step toward achieving truly equitable financial success. They have committed $600 million to nonprofit CDFIs that will put financial power into the hands of those most in touch with communities like ours. This holistic approach to revitalizing local economies will have positive, lasting impacts on both a local and national scale.
For regulators reviewing this merger, I urge them to consider how these investments will strengthen communities everywhere. The CPB’s comprehensive approach, developed in consultation with respected organizations like the Woodstock Institute and Opportunity Finance Network, demonstrates a genuine commitment to creating positive change in our nation. With these benefits and investments, we will be one step closer to achieving lasting economic equality for all.