[House Report 119-205]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 119-205
======================================================================
ADVANCING THE MENTOR-PROTEGE PROGRAM FOR SMALL FINANCIAL INSTITUTIONS
ACT
_______
July 15, 2025.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Hill of Arkansas, from the Committee on Financial Services,
submitted the following
R E P O R T
[To accompany H.R. 3709]
The Committee on Financial Services, to whom was referred
the bill (H.R. 3709) to amend the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 to establish a
Financial Agent Mentor-Protege Program within the Department of
the Treasury, and for other purposes, 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.............................. 3
Committee Consideration.......................................... 3
Related Hearings................................................. 4
Committee Votes.................................................. 4
Committee Oversight Findings..................................... 6
Performance Goals and Objectives................................. 6
Committee Cost Estimate.......................................... 6
New Budget Authority and CBO Cost Estimate....................... 6
Unfunded Mandates Statement...................................... 6
Earmark Statement................................................ 6
Federal Advisory Committee Act Statement......................... 6
Applicability to the Legislative Branch.......................... 7
Duplication of Federal Programs.................................. 7
Section-by-Section Analysis of the Legislation................... 7
Changes in Existing Law Made by the Bill, as Reported............ 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 ``Advancing the Mentor-Protege Program
for Small Financial Institutions Act''.
SEC. 2. ESTABLISHMENT OF FINANCIAL AGENT MENTOR-PROTEGE PROGRAM.
(a) In General.--Section 308 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1463 note) is amended
by adding at the end the following new subsection:
``(d) Financial Agent Mentor-Protege Program.--
``(1) In general.--The Secretary of the Treasury shall
establish a program to be known as the `Financial Agent Mentor-
Protege Program' (in this subsection referred to as the
`Program') under which a financial agent designated by the
Secretary or a large financial institution may serve as a
mentor, under guidance or regulations prescribed by the
Secretary, to a small financial institution to allow such small
financial institution--
``(A) to be prepared to perform as a financial agent;
or
``(B) to improve capacity to provide services to the
customers of the small financial institution.
``(2) Outreach.--The Secretary shall hold outreach events to
promote the participation of financial agents, large financial
institutions, and small financial institutions in the Program
at least once a year.
``(3) Exclusion.--The Secretary shall issue guidance or
regulations to establish a process under which a financial
agent, large financial institution, or small financial
institution may be excluded from participation in the Program.
``(4) Report.--The Office of Minority and Women Inclusion of
the Department of the Treasury shall include in the report
submitted to Congress under section 342(e) of the Dodd-Frank
Wall Street Reform and Consumer Protection Act information
pertaining to the Program, including--
``(A) the number of financial agents, large financial
institutions, and small financial institutions
participating in such Program; and
``(B) the number of outreach events described in
paragraph (2) held during the year covered by such
report.
``(5) Definitions.--In this subsection:
``(A) Financial agent.--The term `financial agent'
means any national banking association designated by
the Secretary of the Treasury to be employed as a
financial agent of the Government.
``(B) Large financial institution.--The term `large
financial institution' means any entity regulated by
the Comptroller of the Currency, the Board of Governors
of the Federal Reserve System, the Federal Deposit
Insurance Corporation, or the National Credit Union
Administration that has total consolidated assets
greater than or equal to $50,000,000,000.
``(C) Rural depository institution.--The term `rural
depository institution' means a depository institution
(as defined in section 3 of the Federal Deposit
Insurance Act)--
``(i) with total consolidated assets of less
than $10,000,000,000; and
``(ii) located in a rural area, as defined
under section 1026.35(b)(2)(iv)(A) of title 12,
Code of Federal Regulations.
``(D) Small financial institution.--The term `small
financial institution' means--
``(i) any entity regulated by the Comptroller
of the Currency, the Board of Governors of the
Federal Reserve System, the Federal Deposit
Insurance Corporation, or the National Credit
Union Administration that has total
consolidated assets lesser than or equal to
$2,000,000,000;
``(ii) a minority depository institution; or
``(iii) a rural depository institution.''.
(b) Effective Date.--This Act and the amendment made by this Act
shall take effect 90 days after the date of the enactment of this Act.
Purpose and Summary
H.R. 3709, the Advancing the Mentor-Protege Program for
Small Financial Institutions Act, was introduced on June 4,
2025, by Representative Joyce Beatty (OH-03). H.R. 3709 directs
the Department of the Treasury to establish a mentor-protege
program that pairs large financial institutions with small,
rural, and minority depository institutions. The goal is to
enhance the capacity of these smaller institutions to serve
their customers and potentially act as financial agents.
Background and Need for Legislation
The Treasury Department's current mentor-protege program,
established in 2018, connects the largest banks in the country
with the smallest financial institutions.\1\
---------------------------------------------------------------------------
\1\U.S. Dep't of the Treasury, Bureau of the Fiscal Service,
Treasury Bank Mentor-Protege Program, https://fiscal.treasury.gov/
treasury-bank-mentor-protege-program/.
---------------------------------------------------------------------------
This voluntary program fosters relationships between small
and large banks by expanding the pool of financial agents.
Large banks partner with smaller institutions to provide
managerial and technical support, helping them strengthen their
balance sheets and improve customer services. Areas of support
may include credit card partnerships, access to capital
markets, equity investments, loan participations, and
opportunities related to U.S. Treasury contracts.
Committee Consideration
119TH CONGRESS
On June 4, 2025, Representative Beatty introduced H.R.
3709, the Advancing the Mentor-Protege Program for Small
Financial Institutions Act. The bill was referred solely to the
Committee on Financial Services. The bill was attached to the
June 5, 2025, hearing titled ``Framework for the Future:
Reviewing Data Privacy in Today's Financial System.''
On June 10, 2025, the Committee on Financial Services met
in open session to consider, among others, H.R. 3709. The
Committee ordered H.R. 3709, as amended, to be reported
favorably to the House of Representatives.
118TH CONGRESS
On February 29, 2024, Representative Beatty introduced H.R.
7483, the Expanding Opportunity for Minority Depository
Institutions Act, with Representatives Andre Carson (D-IN),
Troy Carter (D-LA), Emanuel Cleaver (D-MO), Sylvia Garcia (D-
TX), Al Green (D-TX), Sheila Jackson Lee (D-TX), Hank Johnson
(D-GA), Barbara Lee (D-CA), Eleanor Holmes Norton (D-DC),
Stacey Plaskett (D-VI), Delia Ramirez (D-IL), Jill Tokuda (D-
HI), Bonnie Watson Coleman (D-NJ), and Nikema Williams (D-GA)
as original cosponsors. Representative Gregory Meeks (D-NY) was
added subsequently as a cosponsor. This bill is an earlier
iteration of H.R. 3709. The bill was referred solely to the
Committee on Financial Services.
117TH CONGRESS
On June 7, 2022, Representative Beatty introduced H.R.
7953, the Expanding Opportunities for Minority Depository
Institutions Act. This bill is an earlier iteration of H.R.
3709. The bill was referred solely to the Committee on
Financial Services.
116TH CONGRESS
On December 5, 2019, Representative Beatty introduced H.R.
5315, the Expanding Opportunity for Minority Depository
Institutions Act, with Representatives Meeks, Denny Heck (D-
WA), Green, and Cleaver as original cosponsors. Representative
David Scott (D-GA) was added subsequently as a cosponsor. This
bill is an earlier iteration of H.R. 3709. The bill was
referred solely to the Committee on Financial Services. On
December 11, 2019, the Committee on Financial Services ordered
H.R. 5315 to be favorably reported to the House of
Representatives by a recorded vote of 57 yeas and 0 nays. On
January 13, 2020, the House suspended the rules and passed H.R.
5315 by voice vote. It was received in the Senate and referred
to the Senate Committee on Banking, Housing, and Urban Affairs.
Related Hearings
Pursuant to clause 3(c)(6) of rule XIII of the Rules of the
House of Representatives, the following hearing was used to
develop H.R. 3709:
The Financial Institutions Subcommittee of the Committee on
Financial Services held a June 5, 2025, hearing titled
``Framework for the Future: Reviewing Data Privacy in Today's
Financial System.'' A discussion draft version of the bill was
attached to the hearing. The following witnesses testified at
the hearing: Mr. Scott Talbott, Executive Vice President,
Electronic Transactions Association; Mr. Andrew Morris,
Director of Innovation and Technology, America's Credit Unions;
Ms. Rebecca Kuehn, Partner, Hudson Cook, LLP; Ms. Jennnifer
Huddleston, Fellow in Technology Policy, Cato Institute; and
Ms. Zoe Strickland, Senior Fellow, Future of Privacy Forum.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee Report to include for
each record vote on a motion to report the measure or matter
and on any amendments offered to the measure or matter the
total number of votes for and against and the names of the
Members voting for On June 10, 2025, the Committee ordered H.R.
3709, as amended, to be reported favorably to the House by a
recorded vote of 50 yeas and 1 nay, a quorum being present.
(Record Vote No. FC-141).
Before the question to report was called, the Committee
adopted an amendment in the nature of a substitute, designated
Beatty_013, which made minor edits and technical changes,
offered by Representative Beatty. The amendment was adopted by
voice vote, a quorum being present.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Committee Oversight Findings
Pursuant to clause 3(c) of rule XIII of the Rules of the
House of Representatives, the findings and recommendations of
the Committee, based on oversight activities under clause
2(b)(1) of rule X of the Rules of the House of Representatives,
are incorporated in the descriptive portions of this report.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the goal of H.R. 3709 is to establish
a mentor-protege program pairing large financial institutions
with small, rural, and minority depository institutions to
enhance their capacity to serve customers.
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. 3709. The
Committee has requested but not received a cost estimate from
the Director of the Congressional Budget Office. However,
pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee will adopt as its own
the cost estimate by the Director of the Congressional Budget
Office once it has been prepared.
New Budget Authority and CBO Cost Estimate
With respect to the requirements of 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 with respect
to requirements of 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, a cost estimate was not made
available to the Committee in time for the filing of this
report. The Chairman of the Committee shall cause such estimate
to be printed in the Congressional Record upon its receipt by
the Committee.
Unfunded Mandates Statement
The Committee has requested but not received from the
Director of the Congressional Budget Office an estimate of the
Federal mandates pursuant to section 423 of the Unfunded
Mandates Reform Act. The Committee will adopt the estimate once
it has been prepared by the Director.
Earmark Statement
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the resolution and states that the provisions
of the bill do not contain any congressional earmarks, limited
tax benefits, or limited tariff benefits within the meaning of
the rule.
Federal Advisory Committee Act Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to the Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
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 the bill establishes or reauthorizes a program of
the Federal Government known to be duplicative of another
Federal program, including any program that was included in a
report to Congress pursuant to section 21 of the Public Law
111-139 or the most recent Catalog of Federal Domestic
Assistance.
Section-by-Section Analysis of the Legislation
Section 1. Short title
Section 1 provides the short title is the ``Advancing the
Mentor-Protege Program for Small Financial Institutions Act.''
Section 2. Establishment of Financial Agent Mentor-Protege Program
Section 2 amends Section 308 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 to establish the
Financial Agent Mentor-Protege Program within the Department of
the Treasury. The program enables large financial institutions
or designated financial agents to mentor small financial
institutions to enhance their capacity to serve customers or
prepare to act as financial agents. The section also requires
annual outreach events, sets criteria for exclusion from the
program, mandates annual reporting to Congress, and defines key
terms including ``small financial institution,'' ``large
financial institution,'' and ``financial agent.''
Section 3. Effective date
Section 3 specifies that the Act and its amendments shall
take effect 90 days after the date of enactment.
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):
FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT OF 1989
* * * * * * *
TITLE III--SAVINGS ASSOCIATIONS
* * * * * * *
SEC. 308. PRESERVING MINORITY OWNERSHIP OF MINORITY FINANCIAL
INSTITUTIONS.
(a) Consultation on Methods.--The Secretary of the Treasury
shall consult with the Chairman of the Board of Governors of
the Federal Reserve System, the Comptroller of the Currency,
the Chairman of the National Credit Union Administration, and
the Chairperson of the Board of Directors of the Federal
Deposit Insurance Corporation on methods for best achieving the
following goals:
(1) Preserving the present number of minority
depository institutions.
(2) Preserving their minority character in cases
involving mergers or acquisition of a minority
depository institution by using general preference
guidelines in the following order:
(A) Same type of minority depository
institution in the same city.
(B) Same type of minority depository
institution in the same State.
(C) Same type of minority depository
institution nationwide.
(D) Any type of minority depository
institution in the same city.
(E) Any type of minority depository
institution in the same State.
(F) Any type of minority depository
institution nationwide.
(G) Any other bidders.
(3) Providing technical assistance to prevent
insolvency of institutions not now insolvent.
(4) Promoting and encouraging creation of new
minority depository institutions.
(5) Providing for training, technical assistance, and
educational programs.
(b) Definitions.--For purposes of this section--
(1) Minority financial institution.--The term
``minority depository institution'' means any
depository institution that--
(A) if a privately owned institution, 51
percent is owned by one or more socially and
economically disadvantaged individuals;
(B) if publicly owned, 51 percent of the
stock is owned by one or more socially and
economically disadvantaged individuals; and
(C) in the case of a mutual institution where
the majority of the Board of Directors, account
holders, and the community which it services is
predominantly minority.
(2) Minority.--The term ``minority'' means any black
American, Native American, Hispanic American, or Asian
American.
(c) Reports.--The Secretary of the Treasury, the Chairman of
the Board of Governors of the Federal Reserve System, the
Comptroller of the Currency, the Chairman of the National
Credit Union Administration, and the Chairperson of Board of
Directors of the Federal Deposit Insurance Corporation shall
each submit an annual report to the Congress containing a
description of actions taken to carry out this section.
(d) Financial Agent Mentor-Protege Program.--
(1) In general.--The Secretary of the Treasury shall
establish a program to be known as the ``Financial
Agent Mentor-Protege Program'' (in this subsection
referred to as the ``Program'') under which a financial
agent designated by the Secretary or a large financial
institution may serve as a mentor, under guidance or
regulations prescribed by the Secretary, to a small
financial institution to allow such small financial
institution--
(A) to be prepared to perform as a financial
agent; or
(B) to improve capacity to provide services
to the customers of the small financial
institution.
(2) Outreach.--The Secretary shall hold outreach
events to promote the participation of financial
agents, large financial institutions, and small
financial institutions in the Program at least once a
year.
(3) Exclusion.--The Secretary shall issue guidance or
regulations to establish a process under which a
financial agent, large financial institution, or small
financial institution may be excluded from
participation in the Program.
(4) Report.--The Office of Minority and Women
Inclusion of the Department of the Treasury shall
include in the report submitted to Congress under
section 342(e) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act information pertaining to the
Program, including--
(A) the number of financial agents, large
financial institutions, and small financial
institutions participating in such Program; and
(B) the number of outreach events described
in paragraph (2) held during the year covered
by such report.
(5) Definitions.--In this subsection:
(A) Financial agent.--The term ``financial
agent'' means any national banking association
designated by the Secretary of the Treasury to
be employed as a financial agent of the
Government.
(B) Large financial institution.--The term
``large financial institution'' means any
entity regulated by the Comptroller of the
Currency, the Board of Governors of the Federal
Reserve System, the Federal Deposit Insurance
Corporation, or the National Credit Union
Administration that has total consolidated
assets greater than or equal to
$50,000,000,000.
(C) Rural depository institution.--The term
``rural depository institution'' means a
depository institution (as defined in section 3
of the Federal Deposit Insurance Act)--
(i) with total consolidated assets of
less than $10,000,000,000; and
(ii) located in a rural area, as
defined under section
1026.35(b)(2)(iv)(A) of title 12, Code
of Federal Regulations.
(D) Small financial institution.--The term
``small financial institution'' means--
(i) any entity regulated by the
Comptroller of the Currency, the Board
of Governors of the Federal Reserve
System, the Federal Deposit Insurance
Corporation, or the National Credit
Union Administration that has total
consolidated assets lesser than or
equal to $2,000,000,000;
(ii) a minority depository
institution; or
(iii) a rural depository institution.
* * * * * * *
[all]