[House Report 117-65]
[From the U.S. Government Publishing Office]


117th Congress   }                                      {       Report
                        HOUSE OF REPRESENTATIVES
 1st Session     }                                      {       117-65

======================================================================



 
       LGBTQ BUSINESS EQUAL CREDIT ENFORCEMENT AND INVESTMENT ACT

                                _______
                                

 June 17, 2021.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Ms. Waters, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 1443]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 1443) to amend the Equal Credit Opportunity Act 
to require the collection of small business loan data related 
to LGBTQ-owned businesses, having considered the same, reports 
favorably thereon with an amendment and recommends that the 
bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Section-by-Section Analysis of the Legislation...................     4
Hearings.........................................................     5
Committee Consideration..........................................     5
Committee Votes..................................................     5
Committee Oversight Findings.....................................     5
Statement of Performance Goals and Objectives....................     6
New Budget Authority and CBO Cost Estimate.......................     6
Committee Cost Estimate..........................................     6
Federal Mandates Statement.......................................     6
Advisory Committee Statement.....................................     6
Applicability to Legislative Branch..............................     6
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     6
Duplicative Federal Programs.....................................     7
Changes in Existing Law..........................................     7

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``LGBTQ Business Equal Credit 
Enforcement and Investment Act''.

SEC. 2. SMALL BUSINESS LOAN DATA COLLECTION.

  (a) In General.--Section 704B of the Equal Credit Opportunity Act (15 
U.S.C. 1691c-2) is amended--
          (1) by inserting ``LGBTQ-owned,'' after ``minority-owned,'' 
        each place such term appears;
          (2) in subsection (e)(2)(G), by inserting ``, sexual 
        orientation, gender identity'' after ``sex''; and
          (3) in subsection (h), by adding at the end the following:
          ``(7) LGBTQ-owned business.--The term `LGBTQ-owned business' 
        means a business--
                  ``(A) more than 50 percent of the ownership or 
                control of which is held by 1 or more individuals self-
                identifying as lesbian, gay, bisexual, transgender, or 
                queer; and
                  ``(B) more than 50 percent of the net profit or loss 
                of which accrues to 1 or more individuals self-
                identifying as lesbian, gay, bisexual, transgender, or 
                queer.''.
  (b) Sense of Congress.--It is the sense of the Congress that the term 
``sex'', as used within the Equal Credit Opportunity Act, includes an 
individual's sexual orientation and gender identity, and that this Act, 
in part, clarifies that the sex, sexual orientation, and gender 
identity of the principal owners of a business should be collected 
under section 704B of the Equal Credit Opportunity Act as three 
separate forms of information.

                          Purpose and Summary

    On February 26, 2021, Representative Ritchie Torres (D-NY-
15) introduced H.R. 1443, the LGBTQ Business Equal Credit 
Enforcement and Investment Act, which would amend the Equal 
Credit Opportunity Act (ECOA) to require financial institutions 
to collect and report the self-identified sexual orientation 
and gender identity of small businesses owners. The collection 
of this information would be in addition to the sex, race, and 
ethnicity of small business owners, which are already required 
under ECOA. This bill also includes a definition for businesses 
owned by lesbian, gay, bisexual, transgender or queer or 
questioning (LGBTQ) individuals.

                  Background and Need for Legislation

    On June 15, 2020, the Supreme Court ruled that the 
prohibition against sex discrimination in Title VII of the 
Civil Rights Act of 1964 (Title VII) encompasses sexual 
orientation discrimination and gender identity 
discrimination.\1\ In March 2021, the Consumer Financial 
Protection Bureau (CFPB) issued an interpretative rule, 
consistent with that Supreme Court decision, to clarify that, 
with respect to any aspect of a credit transaction, the 
prohibition against sex discrimination in ECOA\2\ and 
Regulation B encompasses sexual orientation discrimination and 
gender identity discrimination, including discrimination based 
on actual or perceived nonconformity with sex- based or gender-
based stereotypes and discrimination based on an applicant's 
associations.\3\
---------------------------------------------------------------------------
    \1\Bostock v. Clayton Cty., Georgia, 140 S. Ct. 1731, 207 L. Ed. 2d 
218 (2020).
    \2\15 U.S. Code Sec. 1691 (1974).
    \3\Consumer Financial Protection Bureau, Equal Credit Opportunity 
(Regulation B); Discrimination on the Bases of Sexual Orientation and 
Gender Identity, 86 Fed. Reg. 14363 (March 16, 2021) (interpretive 
rule).
---------------------------------------------------------------------------
    While there is a lack specific data on LGBTQ+ owned 
businesses due in part to a lack of data collection 
requirements, recent research demonstrates that LGBTQ+ 
individuals in the United States face significant barriers to 
economic opportunity, including access to credit. For example, 
in 2015, one national survey found that that transgender 
respondents were three times more likely than the general 
population to report annual household income below $10,000, and 
had an unemployment rate that was three times higher than the 
national rate.\4\ Moreover, in 2019, more LGBT people were 
living in poverty than straight cisgender people, with LGBT 
people of color experiencing higher poverty rates than same-
race cisgender straight people.\5\ For example, one study found 
that nearly 31 percent of Black LGBT people live in poverty, 
compared with nearly 25 percent of Black cisgender straight 
people.\6\ Research also shows that LGBTQ individuals and 
communities experience discrimination when applying for a 
mortgage and other forms of credit because of their sexual 
orientation or gender identity.\7\ For example, a study of Home 
Mortgage Disclosure Act (HMDA) data from 2019 found that loans 
in neighborhoods with a higher density of LGBTQ people received 
higher interest and fees, regardless of the applicants' 
sexuality.\8\
---------------------------------------------------------------------------
    \4\S. E. James, et al., The Report of the 2015 U.S. Transgender 
Survey, National Center for Transgender Equality, (2016).
    \5\M.V. Lee Badgett, et al., LGBT Poverty in the United States: A 
study of differences between sexual orientation and gender identity 
groups, UCLA School of Law, Williams Institute, (October 2019).
    \6\Id.
    \7\Hua Sun & Lei Gao, Lending practices to same-sex borrowers, 
Proceedings of the National Academy of Sciences (May 17, 2019); S. 
Goldberg et al., LGBT People And Housing Affordability, Discrimination, 
and Homelessness, UCLA School of Law, Williams Institute (Apr. 2020); 
National Community Reinvestment Coalition, Same-Sex Couples and 
Mortgage Lending, (Jun. 22, 2020).
    \8\See Hua Sun & Lei Gao, Lending practices to same-sex borrowers, 
Proceedings of the National Academy of Sciences (May 17, 2019).
---------------------------------------------------------------------------
    An estimated 70 percent of LGBTQ individuals live in states 
that do not prohibit credit discrimination based on sexual 
orientation or gender identity.\9\ Under the current Federal 
statute, ECOA-- which prohibits creditors from denying, 
discouraging, or applying inconsistent standards to, consumers 
seeking credit products or loans based on their sex--does not 
explicitly protect individuals against discrimination based on 
their sexual orientation or gender identity. However, plenty of 
legal precedent supports the argument that the prohibition of 
sex discrimination in ECOA and Regulation B includes protection 
on the bases of gender identity and sexual orientation.\10\ 
H.R. 5, the Equality Act, which passed in the House of 
Representatives on February 25, 2021, would make explicit that 
discrimination based on sexual orientation and gender identity 
in areas including credit, employment and housing would be 
prohibited under the law.\11\
---------------------------------------------------------------------------
    \9\Movement Advancement Project, Equality Maps: State 
Nondiscrimination Laws, (May 4, 2021).
    \10\Letter from CFPB Director Richard Cordray to Services and 
Advocacy for GLBT Elders (SAGE), (Aug. 30, 2016).
    \11\H.R. 5, 117th Cong. (2021).
---------------------------------------------------------------------------
    Recent research show that there are an estimated 1.4 
million LGBT-owned businesses in the U.S.\12\ The 2015 U.S. 
Transgender Survey found that 15 percent of respondents 
reported self-employment in their own business, profession, 
trade, or farm.\13\ Many LGBT-owned businesses rely on 
certification programs to overcome historical barriers in 
access to capital and government procurement contracts.\14\ 
According one 2016 survey of LGBT-owned businesses with access 
to at least one form of certification, more than 66 percent 
identified as gay-owned, 29.1 percent as lesbian-owned, 2.3 
percent as bisexual-owned, and two percent as transgender-
owned.\15\
---------------------------------------------------------------------------
    \12\National LGBT Chamber of Commerce, America's LGBT Economy, 
(Oct. 2016)
    \13\See S.E. James, et al., The Report of the 2015 U.S. Transgender 
Survey, National Center for Transgender Equality, (2016).
    \14\Justin Nelson, The Equality Act Is Missing One Big Thing, The 
Advocate (Sept. 23, 2015).
    \15\See National LGBT Chamber of Commerce, America's LGBT Economy, 
(Oct. 2016).
---------------------------------------------------------------------------
    Section 1071 of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (Dodd-Frank) amended ECOA to require 
financial institutions to collect, maintain, and submit to the 
CFPB data on applications for credit for women-owned, minority-
owned, and small businesses, with the intent of facilitating 
the enforcement of fair lending laws, and enable communities, 
government agencies, and lenders to identify the community 
development needs as it relates to women-owned, minority-owned, 
and small businesses.\16\ Section 1071 does not explicitly 
require financial institutions to collect data on LGBTQ-owned 
businesses, and does not include a definition for a LGBTQ-owned 
business.
---------------------------------------------------------------------------
    \16\Public Law 111-203, 124 Stat. 1376 (2010).
---------------------------------------------------------------------------
    The intent of H.R. 1443 is to reaffirm that the term 
``sex'', as used within ECOA, includes an individual's sexual 
orientation and gender identity, and to clarify that the sex, 
sexual orientation, and gender identity of the principal owners 
of a business should be collected under section 704B of the 
Equal Credit Opportunity Act as three separate forms of 
information. Moreover, by creating a definition of LGBTQ-owned 
businesses in federal law, this, along with the bill's data 
collection requirements, should help promote investment and 
fair lending to LGBTQ-owned businesses.
    Relatedly, another purpose of this legislation is to 
encourage the CFPB to promptly finalize the rulemaking required 
by Section 1071 of Dodd-Frank, and in doing so, to be inclusive 
of LGBTQ-owned businesses with respect to promoting 
transparency and ensuring fair lending opportunities for these 
businesses.
    This bill is supported by Center for American Progress, 
Center for LGBTQ Economic Advancement & Research, Equality 
Federation, Family Equality, Freedom for All Americans, Human 
Rights Campaign, National Center for Lesbian Rights, National 
Center for Transgender Equality, National Gay and Lesbian 
Chamber of Commerce, National Gay and Lesbian Chamber of 
Commerce, National LGBTQ Task Force Action Fund, the National 
Center for Transgender Equality, Out Leadership, PFLAG 
National, and SAGE.

                      Section-by-Section Analysis


Section 1. Short title

    This section states that the title of the bill is the LGBTQ 
Business Equal Credit Enforcement and Investment Act.

Section 2. Small business loan data collection

    This section would amend Section 704B of the Equal Credit 
Opportunity Act (15 U.S.C. 1691c-2) to require financial 
institutions to collect loan applicant data from LGBTQ-owned 
businesses, and clarifies the self-identified sex, sexual 
orientation, and gender identity of the principal owners of a 
business should be collected as three separate forms of 
information. This section would also add a definition of an 
LGBTQ-owned business to the ECOA statute and include a Sense of 
Congress confirming that sexual orientation and gender identity 
are already covered under ECOA.

                                Hearings

    For the purposes of section 3(c)(6) of House Rule XIII, the 
following hearings considered issues that would be addressed by 
H.R. 1443:
    (1) On February 24, 2021 the Subcommittee on Oversight and 
Investigations held a hearing entitled, ``How Invidious 
Discrimination Works and Hurts: An Examination of Lending 
Discrimination and Its Long-term Economic Impacts on Borrowers 
of Color,'' which examined invidious discrimination in lending, 
its modern manifestations, and its lasting effects on growing 
wealth gaps. The witnesses at this subcommittee hearing were: 
William Darity, Jr., Professor of Public Policy, African and 
African American Studies, and Economics, Duke University, 
Director; Samuel DuBois Cook Center on Social Equity; Lisa 
Rice, President & CEO, National Fair Housing Alliance (NFHA); 
Andre Perry, Senior Fellow, Metropolitan Policy Program, The 
Brookings Institution; Frances Espinoza, Executive Director, 
North Texas Fair Housing Center; and Cheryl Cooper, Analyst, 
Financial Economics Division, Congressional Research Service.
    (2) On March 10, 2021 the Full Committee held a hearing 
entitled, ``Justice for All: Achieving Racial Equity Through 
Fair Access to Housing and Financial Services,'' which examined 
the barriers and biases erected against people of color and 
individuals experiencing discrimination based on their gender 
identity and sexual orientation, the businesses they own, and 
the communities they live in that have been exacerbated by the 
COVID-19 pandemic, including challenges in accessing capital 
and banking services. The witnesses at this full committee 
hearing were: Paulina Gonzalez-Brito, Executive Director, 
California Reinvestment Coalition; Rashad Robinson, President, 
Color of Change; Dr. Keeanga-Yamahtta Taylor, Assistant 
Professor of African-American Studies, Princeton University; 
John C. Yang, President and Executive Director, Asian Americans 
Advancing Justice (AAJC); and Ian Rowe, President and Co-
Founder of Vertex Partnership Academies.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
May 12, 2021, and ordered H.R. 1443 to be reported favorably to 
the House with an amendment in the nature of a substitute by a 
voice vote, a quorum being present.

                  Committee Votes and Roll Call Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that no 
recorded votes were requested during consideration of H.R. 1443 
and that H.R. 1443 was ordered to be reported favorably with an 
Amendment in the Nature of a Substitute by a voice vote.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee's oversight findings and recommendations are 
reflected in the descriptive portions of this report.

             Statement of Performance Goals and Objectives

    Pursuant to clause (3)(c) of rule XIII of the Rules of the 
House of Representatives, the goals of H.R. 1443 are to clarify 
that financial institutions are required to collect and report 
the self-identified sexual orientation and gender identity of 
business loan applicants, and to ensure that LGBTQ-owned 
businesses have equal access to credit opportunities.

               New Budget Authority and CBO Cost Estimate

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974, and pursuant to clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 402 of the Congressional Budget Act 
of 1974, the Committee has requested an estimate from the 
Director of the Congressional Budget Office. CBO was unable to 
provide an estimate in a timely manner.

                        Committee Cost Estimate

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison of the 
costs that would be incurred in carrying out H.R. 1443. After 
careful review, including discussions with the Congressional 
Budget Office, the Committee estimates that H.R. 1443 would 
have an insignificant impact on spending.

                       Unfunded Mandate Statement

    Pursuant to Section 423 of the Congressional Budget and 
Impoundment Control Act (as amended by Section 101(a)(2) of the 
Unfunded Mandates Reform Act, Pub. L. 104-4), the Committee 
adopts as its own the estimate of federal mandates regarding 
H.R. 1443, as amended, prepared by the Director of the 
Congressional Budget Office.

                           Advisory Committee

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

              Application of Law to the Legislative Branch

    Pursuant to section 102(b)(3) of the Congressional 
Accountability Act, Pub. L. No. 104-1, H.R. 1443, as amended, 
does not apply to terms and conditions of employment or to 
access to public services or accommodations within the 
legislative branch.

                           Earmark Statement

    In accordance with clause 9 of rule XXI of the Rules of the 
House of Representatives, H.R. 1443 does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as described in clauses 9(e), 9(f), and 9(g) of rule 
XXI.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee states that no 
provision of H.R. 1443 establishes or reauthorizes a program of 
the Federal Government known to be duplicative of another 
federal program, a program that was included in any report from 
the Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

                        Changes to Existing Law

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, H.R. 1443, as reported, are shown as follows:

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italics and existing law in which no change is 
proposed is shown in roman):

                      EQUAL CREDIT OPPORTUNITY ACT



           *       *       *       *       *       *       *
TITLE VII--EQUAL CREDIT OPPORTUNITY

           *       *       *       *       *       *       *


SEC. 704B. SMALL BUSINESS LOAN DATA COLLECTION.

  (a) Purpose.--The purpose of this section is to facilitate 
enforcement of fair lending laws and enable communities, 
governmental entities, and creditors to identify business and 
community development needs and opportunities of women-owned, 
minority-owned, LGBTQ-owned, and small businesses.
  (b) Information Gathering.--Subject to the requirements of 
this section, in the case of any application to a financial 
institution for credit for women-owned, minority-owned, LGBTQ-
owned, or small business, the financial institution shall--
          (1) inquire whether the business is a women-owned, 
        minority-owned, LGBTQ-owned, or small business, without 
        regard to whether such application is received in 
        person, by mail, by telephone, by electronic mail or 
        other form of electronic transmission, or by any other 
        means, and whether or not such application is in 
        response to a solicitation by the financial 
        institution; and
          (2) maintain a record of the responses to such 
        inquiry, separate from the application and accompanying 
        information.
  (c) Right To Refuse.--Any applicant for credit may refuse to 
provide any information requested pursuant to subsection (b) in 
connection with any application for credit.
  (d) No Access by Underwriters.--
          (1) Limitation.--Where feasible, no loan underwriter 
        or other officer or employee of a financial 
        institution, or any affiliate of a financial 
        institution, involved in making any determination 
        concerning an application for credit shall have access 
        to any information provided by the applicant pursuant 
        to a request under subsection (b) in connection with 
        such application.
          (2) Limited access.--If a financial institution 
        determines that a loan underwriter or other officer or 
        employee of a financial institution, or any affiliate 
        of a financial institution, involved in making any 
        determination concerning an application for credit 
        should have access to any information provided by the 
        applicant pursuant to a request under subsection (b), 
        the financial institution shall provide notice to the 
        applicant of the access of the underwriter to such 
        information, along with notice that the financial 
        institution may not discriminate on the basis of such 
        information.
  (e) Form and Manner of Information.--
          (1) In general.--Each financial institution shall 
        compile and maintain, in accordance with regulations of 
        the Bureau, a record of the information provided by any 
        loan applicant pursuant to a request under subsection 
        (b).
          (2) Itemization.--Information compiled and maintained 
        under paragraph (1) shall be itemized in order to 
        clearly and conspicuously disclose--
                  (A) the number of the application and the 
                date on which the application was received;
                  (B) the type and purpose of the loan or other 
                credit being applied for;
                  (C) the amount of the credit or credit limit 
                applied for, and the amount of the credit 
                transaction or the credit limit approved for 
                such applicant;
                  (D) the type of action taken with respect to 
                such application, and the date of such action;
                  (E) the census tract in which is located the 
                principal place of business of the women-owned, 
                minority-owned, LGBTQ-owned, or small business 
                loan applicant;
                  (F) the gross annual revenue of the business 
                in the last fiscal year of the women-owned, 
                minority-owned, LGBTQ-owned, or small business 
                loan applicant preceding the date of the 
                application;
                  (G) the race, sex, sexual orientation, gender 
                identity, and ethnicity of the principal owners 
                of the business; and
                  (H) any additional data that the Bureau 
                determines would aid in fulfilling the purposes 
                of this section.
          (3) No personally identifiable information.--In 
        compiling and maintaining any record of information 
        under this section, a financial institution may not 
        include in such record the name, specific address 
        (other than the census tract required under paragraph 
        (1)(E)), telephone number, electronic mail address, or 
        any other personally identifiable information 
        concerning any individual who is, or is connected with, 
        the women-owned, minority-owned, LGBTQ-owned, or small 
        business loan applicant.
          (4) Discretion to delete or modify publicly available 
        data.--The Bureau may, at its discretion, delete or 
        modify data collected under this section which is or 
        will be available to the public, if the Bureau 
        determines that the deletion or modification of the 
        data would advance a privacy interest.
  (f) Availability of Information.--
          (1) Submission to bureau.--The data required to be 
        compiled and maintained under this section by any 
        financial institution shall be submitted annually to 
        the Bureau.
          (2) Availability of information.--Information 
        compiled and maintained under this section shall be--
                  (A) retained for not less than 3 years after 
                the date of preparation;
                  (B) made available to any member of the 
                public, upon request, in the form required 
                under regulations prescribed by the Bureau;
                  (C) annually made available to the public 
                generally by the Bureau, in such form and in 
                such manner as is determined by the Bureau, by 
                regulation.
          (3) Compilation of aggregate data.--The Bureau may, 
        at its discretion--
                  (A) compile and aggregate data collected 
                under this section for its own use; and
                  (B) make public such compilations of 
                aggregate data.
  (g) Bureau Action.--
          (1) In general.--The Bureau shall prescribe such 
        rules and issue such guidance as may be necessary to 
        carry out, enforce, and compile data pursuant to this 
        section.
          (2) Exceptions.--The Bureau, by rule or order, may 
        adopt exceptions to any requirement of this section and 
        may, conditionally or unconditionally, exempt any 
        financial institution or class of financial 
        institutions from the requirements of this section, as 
        the Bureau deems necessary or appropriate to carry out 
        the purposes of this section.
          (3) Guidance.--The Bureau shall issue guidance 
        designed to facilitate compliance with the requirements 
        of this section, including assisting financial 
        institutions in working with applicants to determine 
        whether the applicants are women-owned, minority-owned, 
        LGBTQ-owned, or small businesses for purposes of this 
        section.
  (h) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Financial institution.--The term ``financial 
        institution'' means any partnership, company, 
        corporation, association (incorporated or 
        unincorporated), trust, estate, cooperative 
        organization, or other entity that engages in any 
        financial activity.
          (2) Small business.--The term ``small business'' has 
        the same meaning as the term ``small business concern'' 
        in section 3 of the Small Business Act (15 U.S.C. 632).
          (3) Small business loan.--The term ``small business 
        loan'' means a loan made to a small business.
          (4) Minority.--The term ``minority'' has the same 
        meaning as in section 1204(c)(3) of the Financial 
        Institutions Reform, Recovery, and Enforcement Act of 
        1989.
          (5) Minority-owned business.--The term ``minority-
        owned business'' means a business--
                  (A) more than 50 percent of the ownership or 
                control of which is held by 1 or more minority 
                individuals; and
                  (B) more than 50 percent of the net profit or 
                loss of which accrues to 1 or more minority 
                individuals.
          (6) Women-owned business.--The term ``women-owned 
        business'' means a business--
                  (A) more than 50 percent of the ownership or 
                control of which is held by 1 or more women; 
                and
                  (B) more than 50 percent of the net profit or 
                loss of which accrues to 1 or more women.
          (7) Lgbtq-owned business.--The term ``LGBTQ-owned 
        business'' means a business--
                  (A) more than 50 percent of the ownership or 
                control of which is held by 1 or more 
                individuals self-identifying as lesbian, gay, 
                bisexual, transgender, or queer; and
                  (B) more than 50 percent of the net profit or 
                loss of which accrues to 1 or more individuals 
                self-identifying as lesbian, gay, bisexual, 
                transgender, or queer.

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