Bill Overview
Title: LGBTQ Business Equal Credit Enforcement and Investment Act
Description: This bill requires financial institutions to report certain credit application data to the Consumer Financial Protection Bureau for the purposes of enforcing fair lending laws. Specifically, financial institutions must report this data regarding lesbian-, gay-, bisexual-, transgender-, or queer-owned businesses. Currently, this data is reported regarding women-owned, minority-owned, and small businesses.
Sponsors: Sen. Gillibrand, Kirsten E. [D-NY]
Target Audience
Population: Individuals owning LGBTQ-owned businesses around the world
Estimated Size: 2000000
- The bill requires data reporting on credit applications from businesses owned by individuals who identify as lesbian, gay, bisexual, transgender, or queer.
- The bill aims to enforce fair lending laws by gathering data, which might highlight opportunities or biases in the credit systems in place for LGBTQ-owned businesses.
- This is similar to existing requirements for businesses owned by women, minorities, and small businesses, indicating a legislative interest in protecting underrepresented groups in business finance.
- Globally, open identification of LGBTQ status varies by region due to cultural acceptance levels, but significant portions exist in countries supportive of LGBTQ rights.
- The global LGBTQ population is estimated to be around 5-10% of the total population, meaning potentially millions own or operate businesses.
Reasoning
- The target population consists of LGBTQ-owned businesses which, based on estimates, could number up to 2 million in the US.
- The policy does not directly provide financial assistance. Instead, it focuses on data collection to ensure fair lending practices.
- Some individuals within this population may not perceive an immediate impact, given the policy addresses systemic issues that have to be quantified before meaningful change is realized.
- Certain businesses may face indirect benefits through increased access to credit in the long term if discriminatory practices are identified and corrected based on the reported data.
- The distribution considers a mix of perceptions among owners and businesses either directly or indirectly benefiting from this policy.
Simulated Interviews
Restaurant Owner (San Francisco, CA)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- I'm supportive of policies that ensure fairness for LGBTQ businesses.
- I haven't personally experienced discrimination in credit, but I realize others might.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Tech Startup Founder (Austin, TX)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- It has been challenging to get funding, and sometimes I wonder if my identity plays a role.
- Data collection could reveal biases and make the process fairer in the future.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Artist and Gallery Owner (Portland, OR)
Age: 53 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Data is power. Showing how banks treat us differently could lead to real change.
- It's years overdue; many have lost opportunities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 5 |
Consultant (Chicago, IL)
Age: 37 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- This policy is a step, but implementation and enforcement are crucial.
- I want to see real action from this data.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Florist Shop Owner (Atlanta, GA)
Age: 60 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- I haven't had credit issues, but I'm glad others might get better access through this policy.
- The extra visibility of our community is valuable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Real Estate Developer (Las Vegas, NV)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- Bias in real estate lending is real and needs exposure.
- I'll support anything that pushes banks to be fairer.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Fashion Designer (New York, NY)
Age: 41 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- Historically, this industry hasn't been welcoming to LGBTQ folk, especially in finance.
- Advocacy through solid data will be helpful.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Fitness Studio Owner (Miami, FL)
Age: 34 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- Visibility in financial matters can act as a buffer against discrimination.
- I hope banks act sooner rather than later.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Coffee Shop Co-owner (Seattle, WA)
Age: 28 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- Launching a business has its hurdles, and the data might help lower barriers.
- I expect long-term benefits from such initiatives.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Software Developer (Boston, MA)
Age: 46 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- The transparency this policy could bring may break down barriers.
- It feels validating to finally be included in data considerations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Cost Estimates
Year 1: $20000000 (Low: $15000000, High: $25000000)
Year 2: $21000000 (Low: $16000000, High: $26000000)
Year 3: $21500000 (Low: $16500000, High: $26500000)
Year 5: $22000000 (Low: $17000000, High: $27000000)
Year 10: $23000000 (Low: $17500000, High: $28500000)
Year 100: $30000000 (Low: $23000000, High: $37000000)
Key Considerations
- Ensuring the correct and secure collection of sensitive data is crucial to maintain trust and compliance with privacy laws.
- Initial costs might be mitigated by leveraging systems currently used for women and minority-owned business data.
- The act could set a precedent for the inclusion of other underrepresented business owners in similar data reporting mandates.