U.S. Capitol (Washington Blade photo by Michael Key)

New Bill Would Protect LGBTQ-owned Businesses from Lending Discrimination

A bicameral bill introduced on Wednesday by U.S. Sens. Alex Padilla (D-Calif.) and Kirsten Gillibrand (D-N.Y.), along with U.S. Rep. Ritchie Torres (D-N.Y.) would require financial institutions to collect data on access to credit and capital by LGBTQ-owned businesses.

The legislation would thereby allow regulators to better identify and potentially remedy instances of anti-LGBTQ discrimination in these areas.

CNBC reported in June that a study by the Movement Advancement Project found LGBTQ-owned businesses encountered more rejections than non-LGBTQ-owned businesses that applied for funding, amid a tightening of lending standards across the board.

Specifically, the bill would “clarify that Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) requires financial institutions to collect the self-identified sexual orientation and gender identity of the principal owners of small businesses, in addition to their sex, race, and ethnicity,” according to a press release by Padilla’s office.

The California senator said, “With anti-LGBTQ+ legislation and hate crimes on the rise, LGBTQ+ business owners continue to face persistent and unjust barriers to financial success,” adding that “LGBTQ+-owned small businesses are a cornerstone of local economies, and they deserve equitable resources to help them grow and thrive.”

Padilla’s press release notes the legislation “would also add a definition for businesses owned by lesbian, gay, bisexual, transgender, queer, and intersex individuals to the ECOA statute.”

Additionally, “The legislation also includes a Sense of Congress confirming that sexual orientation and gender identity are already covered under the ECOA (including the current data collection requirements)” while clarifying “that the sex, sexual orientation, and gender identity of the principal owners of a business should be collected as three separate forms of information.”

The Congressional Equality Caucus, Ali Forney Center, Center for American Progress, Destination Tomorrow, Drag Out The Vote, Human Rights Campaign, Immigration Equality Action Fund, InterAct, and New Pride Agenda have backed the bill.

Story courtesy of the Washington Blade via the National LGBTQ Media Association. The National LGBTQ Media Association represents 13 legacy publications in major markets across the country with a collective readership of more than 400K in print and more than 1 million + online. Learn more here: https://nationallgbtmediaassociation.com/