Thursday, September 24, 2020

House of Representatives Passes TARP Reforms to Help Hispanic and Women-Owned Businesses

Hispanic and women-owned businesses will find relief in the latest passed reforms that include improvements to the Troubled Assets Relief Program (TARP) in H.R. 354, the TARP Reform and Accountability Act, which was passed late Thursday in by the House of Representatives.

The TARP program includes new provisions that would improve opportunities for women- and minority-owned businesses to participate in the financial recovery efforts. The recommendations were made by the United States Hispanic Chamber of Commerce (USHCC) as a result of a collaborative effort by Hispanic organizations concerned over the lack of diversity in TARP contracting.  Organizations that pushed for reform included the New America Alliance, National Association of Hispanic Real Estate Professionals, National Council of La Raza, Raza Development Fund, and the Mexican American Legal Defense and Education Fund.

The House bill established a new “Office of Minority and Women Inclusion” at the Treasury Department.  The office would be responsible for ensuring compliance by the Treasury Secretary and each assisted financial institution, and for all matters related to diversity in management, employment, and business activities under TARP. Under the bill, the Treasury Secretary would be required to ensure the inclusion of minorities and minority- and women-owned businesses in all activities of the Treasury Department and TARP-assisted institutions, particularly in procurement and contracts in a wide range of financial service areas. The USHCC is pleased with these changes as it will ensure more opportunities for Hispanic-owned businesses.

United States Hispanic Chamber of Commerce