Advancing the Mentor-Protégé Program for Small Financial Institutions Act
Introduced June 4, 2025 · Last action May 13, 2026
Plain English Summary
This bill creates a Treasury Department program pairing large banks and financial institutions (those with $50+ billion in assets) with small financial institutions (those with under $2 billion in assets, minority-owned banks, or rural banks) to mentor them in improving services and capacity. The program requires the Treasury to hold annual outreach events and report to Congress on participation, and becomes effective 90 days after enactment.
Who benefits
Small financial institutions with under $2 billion in assets, minority-owned depository institutions, and rural depository institutions gain mentorship and capacity-building support. Large banks with $50+ billion in assets (such as JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, and Goldman Sachs) benefit by accessing government business opportunities as designated financial agents and gaining reputational value through diversity partnerships. Federally-designated financial agents benefit from the expanded mentoring role and potential access to small institution customers.
Who pays / loses
Taxpayers bear the cost of Treasury Department program administration, outreach events, and reporting requirements, though no specific appropriation is stated in the bill. Small institutions that are not selected for mentoring relationships receive no direct benefit. There are no explicit costs imposed on participating institutions.
Funding & Lobbying Interests
Large financial institutions that are primary beneficiaries include the systemically important banks regulated by the Federal Reserve, Office of the Comptroller of the Currency, and FDIC (JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, Goldman Sachs, and similar institutions). Community banks and minority depository institutions are indirect beneficiaries. The bill's sponsor, Rep. Joyce Beatty (D-OH-3), received $116,470 from 'Other' sources and $20,050 from Finance industry contributors in the 2024 cycle, with no PAC contributions, suggesting grassroots or individual donor support rather than organized institutional backing.
Political Impact
Affected Groups
Small financial institutions (under $2 billion in assets), minority depository institutions and their customers, and rural depository institutions in areas with populations under 50,000 or lacking population density of 1,000 persons per square mile. Large banks with $50+ billion in assets. Customers of small institutions who may benefit from improved service capacity. Estimated to affect hundreds of community and minority-owned banks across the United States and tens of millions of customers they serve.
Political Subtext
Proponents frame this as a diversity and community banking initiative that helps underserved populations by building capacity at minority-owned and rural institutions. Critics may argue it amounts to corporate welfare for large banks, which gain reputational benefits and government contracting opportunities with minimal accountability or financial commitment stated in the bill. The bill contains no enforcement mechanisms, penalties for non-participation, or requirements that mentorship achieve measurable outcomes. Non-partisan analysis would focus on whether mentor-protege programs demonstrably improve small institution performance; existing evidence on SBA mentor-protege programs shows mixed results with wide variation in outcomes.
Real-World Stakes
If enacted, this creates a voluntary matching mechanism between large and small financial institutions. The SBA's Mentor-Protege Program (established 1994) shows that institutional pairing can increase small firm contracting and technical capacity, but outcomes depend heavily on mentor commitment and selection criteria. The 2010 Community Reinvestment Act reforms and subsequent small bank regulatory relief have shown that banks respond to government guidance on lending priorities when combined with performance incentives. This bill contains no performance incentives, regulatory relief, or consequences for underperformance, making it primarily a networking and knowledge-transfer mechanism. Large banks have historically resisted regulatory mandates requiring community investment, suggesting this voluntary approach may yield limited results. The bill's lack of appropriation means program costs come from existing Treasury budgets.
Sponsor
Vote Record
No recorded votes.
Campaign Finance — Primary Sponsor
Top contributing industries
Other$116,470
Finance$20,050
Construction$2,500
Healthcare$2,000
Retail$500
501(c)(4) disclosure: Contributions from 501(c)(4) "dark money" organizations are not required to be publicly disclosed and are not reflected in the figures above. Data sourced from FEC public disclosure filings.
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