H.R. 3709: Advancing the Mentor-Protégé Program for Small Financial Institutions Act

The bill titled "Advancing the Mentor-Protégé Program for Small Financial Institutions Act" aims to establish a program within the Department of the Treasury known as the Financial Agent Mentor-Protégé Program. This program seeks to create partnerships between larger financial institutions and smaller financial institutions, particularly those that are minority-owned or located in rural areas. Here are the key components of the bill:

1. Establishment of the Program

The Secretary of the Treasury will set up the Financial Agent Mentor-Protégé Program. In this program:

• A designated financial agent or large financial institution can act as a mentor for a small financial institution.
• The goal is to help small financial institutions either:
  • Prepare to perform as a financial agent.
  • Enhance their ability to provide services to their customers.

2. Outreach and Promotion

The Secretary of the Treasury is required to organize outreach events at least once a year. These events will promote participation in the program among:

• Financial agents
• Large financial institutions
• Small financial institutions

3. Participation Process

The Secretary will establish guidelines for excluding a financial agent, large financial institution, or small financial institution from participating in the program, ensuring there are criteria for involvement.

4. Reporting Requirements

The Office of Minority and Women Inclusion within the Department of the Treasury must report to Congress on the program. This report will include:

• The number of participating financial agents, large financial institutions, and small financial institutions.
• The number of outreach events conducted during the reporting year.

5. Definitions

The bill provides definitions for key terms:

• Financial agent: A national banking association designated by the Secretary of the Treasury as a financial agent for the government.
• Large financial institution: An entity regulated by certain financial authorities with total assets of $50 billion or more.
• Rural depository institution: A depository institution with less than $10 billion in assets located in a rural area.
• Small financial institution: An entity regulated by specific financial authorities with total assets of $2 billion or less, which may also include minority depository institutions and rural depository institutions.

6. Effective Date

This act will take effect 90 days after its enactment.

Relevant Companies

• JPM (JPMorgan Chase & Co.): As a large financial institution, JPMorgan could participate as a mentor to smaller institutions, enhancing its involvement with community banking.
• BAC (Bank of America Corp.): Similar to JPMorgan, Bank of America may act as a mentor, potentially improving its outreach and services to small and rural financial institutions.
• USB (U.S. Bancorp): U.S. Bancorp could be involved in the program as a mentor, benefiting from the relationships developed with smaller banks.