Source: United States House of Representatives – Congresswoman Ayanna Pressley (MA-07)
A transcript of the Congresswoman’s exchange with hearing witnesses is available below and video is available here.
Transcript: Pressley Touts SPARK Act, Urges More Financial Investment in Small, Minority-Owned Businesses
House Financial Services Committee
April 28, 2026
REP. PRESSLEY: Thank you, Mr. Chair. I’ll state the obvious to everyone, apparently, but the Trump Administration. We’re in an affordability crisis, and while minority-owned small businesses in Massachusetts generated two and a half billion dollars in revenue in 2023, many of these small businesses, our minority owned small businesses remain underserved by our financial system. I’m talking about their ability to access equitably loans, credit and other supports from our financial system.
In fact, I know many experienced a disparate impact from the pandemic and never recovered. I represent the Massachusetts 7th Congressional District, and more recently, we have seen a number of our minority owned small businesses close to or forced to shutter their doors, having never recovered from the pandemic. A legacy business, Final Touch Boutique in Roxbury, is one of those such businesses.
Mr. Baer, during the pandemic, do you know how small, minority owned businesses were impacted compared to other businesses? Can you speak to that?
MR. BAER: I mean, Congresswoman, I don’t have statistics on that. I presume, I think, as you suggested, that they did worse, probably because they had less capital built up and were less resilient and were smaller, and that was a tough thing to be, even with, you know, PPP aid and things like that.
REP. PRESSLEY: Fair enough. Well, in fact, one Federal Reserve research paper found that Black owned businesses went out of business at twice the rate of white owned businesses, and saw cash decline at nine times the level.
Mr. Baer, when bank capital requirements are lowered, like under Trump’s Basel III proposals, do you have data on how much of that extra money actually goes back into communities for local small business loans?
MR. BAER: Well, I mean, it’s difficult to predict, as the rules are not final, so we would have to wait a year or two and see what the results are. So I can’t give you any kind of accurate estimate on how much that would increase, any type of lending, whether that’s mortgage or securities intermediation or loans to small minority businesses.
REP. PRESSLEY: Well, some of what I’ve found is that larger banks are not necessarily reinvesting these dollars into underserved communities or lending more if they don’t have to. So in fact, much of the research, what it bears out is that increasing bank capital requirements can actually increase bank lending and resilience, and in 2023 we saw what the SVB bank collapse almost did to small businesses in districts like mine, the in MA-7th and around the country. So we need banks that lend more but also protect people’s money.
Ms. Valladares, would rolling back bank capital requirements through these proposals help or hurt small, minority owned businesses?
MS. VALLADARES: I think unfortunately, the data and the history would show that it’s very much likely to hurt them. If you see what happened during the financial crisis, about 50% of Hispanic Americans lost jobs and suffered. About 25% African Americans suffered, and about 10% of the white population suffered.
Not only are there issues with discrimination, but as one of my fellow panelists described, yeah, there’s issues with their access to capital, with their experience in taking out loans, all of the you know, these are, these are complex issues. So there’s a lot of things, but and especially under this administration, I personally see no signs that they would be focused on helping underserved communities. None whatsoever.
REP. PRESSLEY: Thank you, you know. And in fact, these businesses are vital to the ecosystem of our communities, social and economic anchors, and they provide mobility as well, they provide jobs and services that meet local needs and help keep our city strong in times of economic downturn.
That’s why I introduced the SPARK Act, along with Senator Markey and others, to ensure that small businesses are invested in and supported through grants and business loans. If Republicans were really serious about improving Main Street and economic growth, they will protect people’s money and pass bills that invest dollars directly into the community.
That is actually a policy choice we can make right now and improve the lives of the American people. And I just want to say to my constituents, while some may have forgotten how the 2008 global financial crisis impacted you, or how the COVID-19 pandemic and SVB bank collapse impacted you, or even how the history of slavery and racial discrimination have continued to impact you, I want you to know that your Congresswoman has not forgotten you and will not stop fighting to make sure we repair past harm and prevent future harm to our businesses, communities, and families.
I yield back.