The idea of big banks getting bigger made me a little nervous when I first heard about the potential Capital One-Discover merger. However, after learning more about how Georgia’s small businesses will be positively impacted if regulators approve this merger, I’m excited at the prospect.
State Rep. Shea Roberts
Capital One’s groundbreaking $265 billion Community Benefits Plan (CBP), set to unfold over the next five years if the merger with Capital One and Discover is approved, will be a game changer for many aspects of community development. But its focus on small businesses is particularly noteworthy for Georgia’s economic landscape.
Small businesses are the backbone of Georgia’s economy, driving job creation and innovation across the state. We are home to 1.2 million small businesses that employ around 1.7 million people. Capital One’s CBP recognizes this by allocating over $15 billion specifically for lending to small businesses in low and moderate-income (LMI) communities and those with annual revenues of $1 million or less. This targeted support is crucial for fostering economic growth in areas that have historically struggled to access capital.
The plan’s commitment to small businesses extends beyond just financial support. It includes $575 million in philanthropy and pro bono engagements aimed at capacity building for nonprofits and small businesses. This investment will enable these organizations to enhance their services, expand their reach, and ultimately benefit more individuals and families. By providing tools, resources, and guidance, Capital One is empowering small businesses to thrive and drive economic development in underserved communities.
Moreover, Capital One’s CBP is committing $5 billion to spending with diverse suppliers which will ensure that a broader range of businesses benefit from the bank’s expansive operations. For Georgia, this means increased opportunities for minority-owned businesses and a more inclusive economic environment. This commitment also touches close to home with metro Atlanta maintaining the second-highest number of Black-owned businesses in the U.S., with over 10,000 and counting.
One of the standout features of the CBP is its focus on expanding access to the banking system. According to Georgia Watch, 19% of Georgia households don’t have a bank account. Capital One plans to significantly grow its flagship, no-fee 360 Checking account, which has no minimum balance requirements or overdraft fees. By maintaining 30% of its branches and cafés in LMI census tracts and opening additional Cafés in these communities, Capital One is providing convenient and accessible banking options for many Georgians who currently lack them. This plan will allow more people of every income level to get affordable access to traditional, reliable banking services.
Capital One is also dedicated to introducing new products, features, and programs designed to meet the needs of underserved populations, including traditionally underserved small businesses. By partnering with community-based organizations on high-impact research and advocacy, Capital One is taking a holistic approach to address key consumer and community policy concerns. NeighborWorks America, National Association for Latino Community Asset Builders, The Opportunity Finance Network, and Woodstock Institute, the four partners who negotiated the project with Capital One and collectively represent more than 800 nonprofits nationwide, deserve a lot of credit for creating a targeted approach that will empower communities across Georgia. I appreciate this community-informed approach, in addition to their engagement with more than 100 local, state and federal elected officials. This level of collaboration ensures that the CBP is tailored to the unique needs of each community, maximizing its impact.
In my capacity as a state representative, I can only urge regulators to recognize the immense potential of this community benefits plan. The approval of Capital One’s acquisition of Discover Financial Services will unlock unprecedented resources and opportunities for Georgia’s communities. This is a pivotal moment where regulatory support can catalyze lasting positive change, making financial stability and economic growth a reality for countless Georgians.
Georgia is a growing state and increasing the number of businesses in our state will help keep this momentum growing. Capital One’s CBP represents a monumental step forward in supporting small businesses in Georgia, and thus supports Georgia’s economic growth. By focusing on lending, capacity building, and expanding access to banking services, this plan has the power to transform lives and strengthen communities. Regulators should approve the acquisition, paving the way for a brighter, more inclusive future for all Georgians.
State Rep. Shea Roberts represents House District 52 in north Atlanta including parts of Sandy Springs and Dunwoody
