Rep. Nikema Williams Questions Treasury Sec. Scott Bessent on Minority Business Development

Household Financial Resilience and Minority Businesses

• 💡 Rep. Nikema Williams emphasized the need to include all families in the FSOC's new household resilience working group, highlighting that discrimination in lending and investment is a threat to American financial stability.
• 🎯 Atlanta, with the largest racial wealth gap, can benefit significantly from supporting entrepreneurship and access to capital within the black community.
• 📊 Black-owned businesses have seen substantial growth, contributing billions in revenue and creating millions of jobs, yet face significant barriers to sustainability and growth.

Impact of Dismantling the MBDA

• 📌 Williams questioned Treasury Secretary Scott Bessent on the impact of dismantling the Minority Business Development Agency (MBDA), citing a $7.1 million funding delivery to Georgians during the Biden administration.
• ⚠️ Bessent stated that the FSOC does not view the dismantling of the MBDA as a direct financial stability concern but acknowledged the disappearance of small banks, suggesting many could have been minority banks.
• 💬 Williams invited Bessent to Atlanta to meet with small business owners impacted by the dismantling of the MBDA.

AI and Lending Discrimination

• 🚀 The 2025 FSOC report prioritizes deregulation and the use of Artificial Intelligence (AI) to enhance financial institution efficiency.
• 🔍 Williams inquired about proactive steps regulators should take to combat lending discrimination, particularly as it may be compounded by the use of AI in lending decisions.
• 💡 The potential benefits of AI in providing innovative services cheaper and faster were acknowledged, including its use in evaluating creditworthiness through alternative data.