New York Representative Ritchie Torres. (Photo courtesy Office of NY Rep. Ritchie Torres)
The U.S. House approved legislation June 24 aimed at supporting LGBTQ business owners by requiring financial institutions to report their lending practices with them.
The legislation, H.R. 1443, or the LGBTQ Business Equal Credit Enforcement & Investment Act, was approved by a 252-176 largely along party lines. The 219 Democrats who voted in favor of the bill were joined by 33 Republicans.
Specifically, the legislation requires financial institutions to report credit application data from LGBTQ-owned businesses to the Consumer Financial Protection Bureau for the purposes of enforcing fair-lending laws. Currently, this data is reported regarding women-owned, minority-owned, and small businesses, the bill text says.
Rep. Ritchie Torres (D-N.Y.), the first openly gay Afro-Latino election to Congress, is the sponsor of the legislation in the House and after the vote displayed on Twitter the official tally sheet for the legislation.
The White House issued a formal Statement of Administration Policy in favor of the legislation June 23 declaring the Biden administration’s support for the bill.
“Too often, businesses from underserved communities, including the LGBTQ community, struggle to access capital and credit,” the statement says. “This bill recognizes these challenges and takes steps to increase transparency and accountability around lending to LGBTQ-owned small businesses.”
The House voted to approve the legislation after earlier this month to proceed without regular order and bring the bill directly to vote, which requires a two-thirds majority, was blocked by House Republicans.
Rep. Nikema Williams (R-Ga.) was among the lawmakers who voted in favor of the bill and said in a statement the legislation “will ensure LGBTQ business owners are treated fairly.”
“As we Build Back Better after this pandemic, it is essential that we ensure that all of our small businesses have the resources they need to thrive,” Williams said. “Until we understand the extent of anti-LGBTQ discrimination in lending, we cannot guarantee that every small business owner has fair access to credit. I am proud to support and co-sponsor this legislation as we continue to celebrate Pride Month and work to end all forms of discrimination.”
The legislation now heads to the U.S. Senate. It’s unclear whether the chamber, which is split 50-50 along party lines, will have the necessary support to either bring up or approve the legislation.
