Opinion: A legislator’s view of how a national financial merger can create a new range of local investment opportunities.

The deal between Capital One and Discover includes a massive package of financial resources for small businesses, nonprofits, affordable housing, and more.

Editor’s Note: Capital One and Discover, two of the nation’s largest credit issuers, announced their intention to merge in February. To address concerns about the merger’s potential impact on competition and borrowing costs for local needs, the firms announced a Community Benefits Plan to invest $265 billion across a broad swath of local investment opportunities, including nonprofits, small businesses, minority-owned institutions, housing construction, and access to banking services. State Assembly Rep. Jodi Emerson (D-Eau Claire) outlines her support for the plan.

I am deeply concerned yet committed to tackling the challenges of housing affordability and access to essential financial resources facing our community. 

We’ve witnessed how critical these issues are to both individual success and the overall well-being of our neighborhoods. As elected Representative of the 91st State Assembly District in Eau Claire, I fully support the merger between Capital One and Discover, which promises to bring transformative benefits through Capital One’s $265 billion Community Benefits Plan (CBP).

Housing affordability is a pressing issue here in the Chippewa Valley and throughout Wisconsin. Our state, like many others, has struggled with rising housing costs, making it increasingly difficult for families to find stable and affordable homes. As a member of the Housing and Real Estate Committee, I see firsthand how these challenges are affecting my constituents. Capital One’s CBP takes direct aim at this problem by committing $44 billion to community development financing. This investment will help build and renovate affordable housing units, offering much-needed relief to Wisconsin residents and providing the foundation for stable communities. Beyond the homes themselves, this funding will also support public infrastructure and sustainable development, creating long-term benefits for neighborhoods that have been overlooked.

Small businesses are another cornerstone of our local economy, and they are often the hardest hit by limited access to capital. Capital One’s CBP is addressing this head-on with a $15 billion allocation for lending to small businesses in low- and moderate-income (LMI) communities. These funds will be critical in helping local businesses not only survive but thrive, creating jobs and boosting economic growth across Wisconsin. Additionally, the plan’s commitment to spending $5 billion with diverse suppliers is a significant step toward fostering a more inclusive economy, ensuring that businesses owned by women, minorities, and underrepresented groups have the resources they need to succeed.

One of the key strengths of this plan is the emphasis on partnerships with community-focused organizations like the National Association for Latino Community Asset Builders (NALCAB), NeighborWorks America, the Opportunity Finance Network (OFN), and the Woodstock Institute. These organizations have deep roots in the communities they serve and understand the unique needs of our most vulnerable populations. By collaborating with these trusted partners, Capital One is ensuring that the resources and investments under the CBP are effectively targeted, maximizing the impact on the communities that need it most.

The plan’s $600 million commitment to supporting Community Development Financial Institutions (CDFIs) is another critical component that will benefit our state. CDFIs play an essential role in providing financial services to those who are often excluded from traditional banking. By strengthening these institutions, Capital One is helping to ensure that residents in LMI areas can access affordable credit and financial support, leading to greater financial stability and opportunities for growth.

Moreover, the CBP includes efforts to expand access to banking services, which is crucial for the nearly 16% of Wisconsin households that remain underbanked. Capital One’s expansion of its Bank On certified 360 Checking account, with no fees or minimum balance requirements, will be a game-changer for those who have historically been left out of the financial system. The bank’s commitment to maintaining 30% of its branches and cafés in LMI areas will further enhance accessibility, making it easier for all Wisconsinites to manage their finances.

In conclusion, Capital One’s Community Benefits Plan represents a unique opportunity to drive real, positive change in Wisconsin. By focusing on affordable housing, small business support, and financial inclusion, this plan has the potential to strengthen our communities and improve the lives of countless residents. I urge federal regulators and community leaders to support the merger between Capital One and Discover, allowing these critical resources to flow into our state and paving the way for a brighter, more equitable future for all Wisconsinites.