FOR IMMEDIATE RELEASE
July 28, 2023
William Pierre-Louis, Jr.
House Republicans Voted Against Fairness for Small Businesses in Trying to Repeal the CFPB’s 1071 Rule
Washington, D.C.- House Republicans’ vote yesterday to repeal the Consumer Financial Protection Bureau’s (CFPB) Section 1071 rule, which combats discrimination and increases transparency among small business lenders is yet another example of the agency’s opponents trying to undermine the work and efficacy of a popular agency, according to Americans for Financial Reform and a coalition of consumer advocates.
“Republicans forced through a vote that would prevent the CFPB from collecting data on patterns to women-owned, minority-owned, and small businesses,” said Elyse Hicks, consumer policy counsel at Americans for Financial Reform.
Unlawful discriminatory lending practices have long left some small businesses behind, deepening inequality and further fueling economic concentration among larger businesses across our economy.
To help address the problem, CFPB’s Section 1071 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.
“Implementing Section 1071 is a great opportunity to reduce ongoing disparities in access to small business credit,” said Hicks. “Addressing these disparities will make urban and rural economies more vibrant, and bring substantial benefits to all stakeholders, including lenders.”
The ability to review this data will better enable communities, regulators, and creditors to identify business and community development needs and opportunities.
Read various quotes from consumer groups here: