CFPB Releases Outline of Small Business Data Collection Rulemaking

CFPB Releases Outline of Small Business Data Collection Rulemaking

On September 15th, the Consumer Financial Protection Bureau (CFPB) released an Outline of Proposals Under Consideration for a small business lending data collection and reporting rulemaking pursuant to Section 1071 of the Dodd-Frank Act.  Section 1071 amends the Equal Credit Opportunity Act (ECOA) to require financial institutions to collect certain data regarding applications for credit for women-owned, minority-owned, and small businesses, maintain records of responses, and report the data to the CFPB on an annual basis, in accordance with rules and guidance issued by the CFPB.  The purpose of Section 1071 is “to facilitate enforcement of fair lending laws and enable communities, governmental entities, and creditors to identify business and community development needs and opportunities of women-owned, minority-owned, and small businesses.”

A high-level summary of the Outline can be found here. The Outline describes proposals being considered to implement Section 1071 along with the relevant law, the regulatory process, and an economic analysis of the potential impacts of the proposals on directly affected small entities.

The CFPB, in collaboration with the SBA, will convene a Small Business Review panel in October to consult with small entities regarding the potential impact of the proposals under consideration, in advance of issuing a notice of proposed rulemaking.

September 21st, 2020|