By: Alescia Ellis, Founder and Owner, Third in Line Boutique
Black owned businesses in California have frequently encountered obstacles in securing the necessary capital for expansion and success. However, I am always pleased to see proposals that I know will uplift our communities and help our businesses not only survive, but thrive. That is why I am happy to express my support for the $265 billion Community Benefits Plan (CBP) that will be put in place should regulators approve the Capital One-Discover merger.
What particularly excites me about the CBP, as a Black woman-owned small business owner and past CEO of two chambers of commerce – the Tujunga and Chatsworth-Porter Ranch chambers – is its allocation of $15 billion specifically for small business lending in low- and moderate-income (LMI) communities. Having access to capital can be the difference between staying open and closing shop for many small businesses. I know these investments will be transformative for minority-owned businesses that often struggle to access financial services with traditional financial institutions, which will create jobs and drive economic growth in our communities.
The initiative also earmarks $5 billion for partnerships with suppliers from diverse backgrounds. This funding stream creates vital opportunities for Black entrepreneurs, particularly women business owners and other historically undeserved groups. Opening doors to major contracts helps establish fair competition and drives economic advancement throughout Los Angeles County. When these enterprises succeed, they strengthen our entire business community and contribute to the shared prosperity of our communities and our nation.
Beyond the benefits the plan will provide to small businesses, it will also put home ownership within reach for people in historically undeserved communities in Los Angeles and all over the country. The plan sets aside $200 billion in lending to low- and moderate-income (LMI) individuals and communities. This will give countless minority households hope and the opportunity to secure funding for a mortgage or launch their own businesses.
One of the aspects I appreciate most about Capital One’s approach is they have worked with organizations that have a vested interest in the success of our communities, including the National Association for Latino Community Asset Builders (NALCAB), NeighborWorks America, the Opportunity Finance Network (OFN), and the Woodstock Institute, to draft the plan. I am certain that this collaborative approach will ensure that the investments proposed in the CBP will reach the people who need it most. As regulators review the Capital One-Discover merger, I urge them to consider the positive benefits the merger, and the CBP will have on minority entrepreneurs and aspiring homeowners in Los Angeles.
