Capital One-Discover Merger Would Be A Boost Small To Business

By Ahmad Holmes | Special to The OBSERVERThe impact of Black-owned businesses on the world’s fifth-largest economy is monumental and cannot be overstated. In 2020, California was home to 197,000 Black-owned businesses, which created over 220,000 jobs and contributed nearly $3 billion in fiscal impact.& Yet, as the President & CEO of the California African American Chamber of Commerce, I am acutely aware of these businesses’ challenges. Black-owned businesses are disproportionately affected by the lack of competition in the payment network industry. Additionally, they often encounter significant barriers when accessing business credit cards or securing small business loans from traditional financial institutions.& At the California African American Chamber of Commerce, we are committed to addressing these disparities by advocating for equitable policies, fostering collaboration, and providing resources that empower Black-owned businesses to thrive and sustain their vital role in our economy.But there’s hope. The proposed Capital One-Discover merger presents a unique opportunity to introduce much-needed competition into the payment network industry. This merger comes with a Community Benefits Plan (CBP) that promises unprecedented investments in small businesses and the financial institutions that support them, directly addressing long-standing barriers for Black-owned businesses.& Currently, Visa and Mastercard control 80 percent of the...