I am proud of the contributions Arizona’s Latino communities make to our neighborhoods and our state’s economy. As an Arizona state representative and chair of the Latino Caucus, I understand the challenges our communities face when it comes to housing affordability and access to essential financial services. Despite the immense economic gains our communities have made over the years, half of Latinos in our state spend more than 30% of their income on housing, and 16 % of Latino Arizonans still live below the poverty line as of 2022.  

We need bold solutions to tackle these disparities, expand economic opportunity, and empower our communities to build credit and eventually build wealth. That is why I am excited about Capital One’s $265 billion Community Benefits Plan, which they will roll out should the merger with Discover be approved.     

This plan is unique in that it was not drafted in a dark room filled with only powerful executives. Capital One brought together grassroots organizations that have a vested interest in the success of our communities, including the National Association for Latino Community Asset Builders, which supports the development of affordable housing and the expansion of financial counseling.   

I’m thrilled to see that this plan includes several proposals that will greatly benefit our communities, including $35 billion to support homeowners and aspiring homeowners in Arizona and all over the country. The plan also includes a $600 million commitment to supporting Community Development Financial Institutions, which are essential in providing financial services to households often excluded from traditional banking. These funds will help them expand their reach and help underserved communities build their American dream, whether that be starting their own business, financing their education or buying a home.  

Capital One’s plan will also support our state’s Latino-owned businesses, which often struggle to access banking services from traditional financial institutions. The plan sets aside $15 billion for small business lending in low-moderate income neighborhoods, which will expand credit access to Arizona’s aspiring small business owners and empower them to drive economic growth, create jobs, and contribute to the economic fabric of our great state.  

There is a lot of work to be done in order to achieve financial inclusion for all Americans. But I know that this plan will be a great step in the right direction for Latino communities in Arizona. They need bold and ambitious private sector investments that address their needs.   

As regulators review this merger, I urge them to consider all the benefits it will bring to communities other financial institutions often leave behind. This merger and the Community Benefits Plan will empower more people to build wealth in our country, start businesses, and get one step closer to realizing their American dream. 

 
Rep. Lydia Hernandez, a Democrat, represents Legislative District 24.