FOR IMMEDIATE RELEASE
April 5, 2023
William Pierre-Louis, Jr.
CFPB Finalizes Important Rule for Fair Small Business Lending
Washington, D.C. – The Consumer Financial Protection Bureau’s final rule implementing Section 1071 of the Dodd-Frank Act will allow better enforcement of fair lending laws and help increase access to sustainable credit for small businesses and women- and minority-owned small businesses in particular.
“With rules implementing Section 1071 of the Dodd-Frank Act finalized, the CFPB will be able to collect comprehensive data on small business lending, giving regulators better tools for enforcing fair lending laws and advancing equitable treatment for women – and minority-owned small businesses,” said Elyse Hicks, consumer policy counsel at Americans for Financial Reform. “Fair and equal access to capital is critical for U.S. small businesses and the communities in which they operate to thrive.”
Unlawful discriminatory lending practices have long left some small businesses behind, deepening inequality in our economic and financial system.
The CFPB’s rule will require lenders to compile and report their small business lending data, including numbers of applications; product information including pricing; geographic information; and demographic information about applicants and recipients including the number of principal owners; and minority-owned, women-owned and LGBTQI-owned business statuses, creating greater transparency and accountability.
The ability to review this data will also better enable communities, regulators, and creditors to identify business and community development needs and opportunities.