Local opinion: Capital One's Community Benefits Plan will help small business owners

Small business owners in Tucson like me know about the ups and downs of owning a small business. We love to serve our communities but it’s no easy task without partners willing to support the visions of our neighbors.

That’s why I’m thrilled about Capital One’s recently announced $265 billion Community Benefits Plan. This initiative could be a game-changer for entrepreneurs like me and for our communities across Arizona and the nation. For too long, Hispanic-owned businesses have faced significant barriers in accessing financial services and credit. The Community Benefits Plan’s commitment of $200 billion in lending for low- and moderate-income individuals and communities is exactly what we need to level the playing field.

This infusion of capital could help countless entrepreneurs in our community turn their dreams into reality. I’m particularly excited about the $15 billion earmarked for small business lending in LMI areas.

As someone who started my business in a predominantly Latino market, I know how transformative this kind of investment can be. It’s not just about individual businesses; it’s about revitalizing entire communities, creating jobs, and building generational wealth. The plan’s $5 billion commitment to spending with diverse suppliers is another aspect that resonates deeply with me.

As a Latina business owner, I’ve often felt overlooked in procurement processes. This initiative could open doors for businesses like mine to secure contracts with larger corporations, helping us scale and compete on a bigger stage. What sets this plan apart is the collaborative approach taken in its development. The involvement of organizations like the National Association for Latino Community Asset Builders ensures that the investments will address real, on-the-ground needs within our communities. It’s refreshing to see a major financial institution not just throwing money at problems, but actively engaging with community leaders to create targeted solutions.

The CBP’s focus on expanding access to no-fee checking accounts and financial education programs is also crucial. In my community, I’ve seen how a lack of access to basic banking services can hold people back. By growing their Bank On certified accounts by 50%, Capital One is providing essential tools for financial stability to those who have been historically excluded from the banking system. Capital One has a history of helping people with credit access and those with lower credit scores, which is a huge issue in minority communities. As of March 2024, 69% of Capital One customers that started with subprime credit scores achieved a prime credit score of 660 or higher.

This means increased access to capital to start a business and more access to credit to make important, life-changing purchases. As federal regulators review Capital One’s proposed acquisition of Discover, I urge them to consider the far-reaching potential of this community benefits plan. For Hispanic entrepreneurs like me and for underserved communities across Arizona and the nation, this plan represents a rare opportunity to drive significant resources toward holistic community development. The challenges facing our communities are complex and interconnected.

We need bold, comprehensive solutions like this CBP to create lasting positive change. As someone who has built a business from the ground up in an underserved community, I believe this plan deserves our enthusiastic support. It’s not just about individual businesses — it’s about building stronger, more resilient communities where all Americans have the opportunity to thrive.