Small business lending data collection rulemaking
We are now in the process of writing regulations to implement section 1071 of the Dodd-Frank Act.
In the Dodd-Frank Wall Street Reform and Consumer Protection Act, Congress directed the Bureau to adopt regulations governing the collection of small business lending data. Section 1071 of the Dodd-Frank Act amended the Equal Credit Opportunity Act (ECOA) to require financial institutions to compile, maintain, and submit to the Bureau certain data on applications for credit for women-owned, minority-owned, and small businesses.
Congress enacted section 1071 for the purpose of:
- Facilitating enforcement of fair lending laws
- Enabling communities, governmental entities, and creditors to identify business and community development needs and opportunities for women-owned, minority-owned, and small businesses
Under the process established by Congress in the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), we are required to consult with representatives of small entities likely to be affected directly by the regulations we are considering proposing and to obtain feedback on the likely impacts the rules we are considering would have on small entities.
Outline of proposals
On September 15, 2020, we released an Outline of Proposals Under Consideration and Alternatives Considered, which describes proposals that we are considering 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.
Outline of Proposals Under Consideration and Alternatives Considered
High-Level Summary of Outline of Proposals Under Consideration for SBREFA
Discussion Guide for Small Entity Representatives
Panel report
On October 15, 2020, the Bureau convened a Small Business Review Panel for its section 1071 rulemaking. The panel is comprised of a representative from the Bureau, the Chief Counsel for Advocacy of the Small Business Administration, and a representative from the Office of Information and Regulatory Affairs in the Office of Management and Budget. The panel collects advice and recommendations from representatives of small entities that are likely to be subject to the regulation that the Bureau is considering proposing.
On December 15, 2020, we released the Final Report of the Small Business Review Panel on the CFPB’s Proposals Under Consideration for the Small Business Lending Data Collection Rulemaking. This report includes a summary of the feedback received from small entity representatives during the panel process, and findings and recommendations made by the panel.
Key milestones
| Date | Milestone |
|---|---|
| May 10, 2017 |
CFPB held a field hearing on small business lending in Los Angeles, CA. The CFPB also issued a Request for Information Regarding the Small Business Lending Market, and released a report on Key dimensions of the small business lending landscape. Read former Director Cordray’s remarks from the field hearing. |
| Nov. 6, 2019 |
CFPB held a symposium focused on Section 1071 of the Dodd-Frank Act. |
| Jan. 23, 2020 |
CFPB released a report on Small business lending and the Great Recession. |
| July 22, 2020 | CFPB released a voluntary survey to measure the one-time costs of compliance with an eventual small business lending data collection rule. |
| Sept. 15, 2020 |
CFPB released an Outline of Proposals Under Consideration and Alternatives Considered for the small business lending data collection rulemaking, along with a High-Level Summary of Outline of Proposals Under Consideration for SBREFA and a Discussion Guide for Small Entity Representatives . Learn more in the press release. |
|
Dec. 15, 2020 |
CFPB released the Final Report of the Small Business Review Panel on the CFPB’s Proposals Under Consideration for the Small Business Lending Data Collection Rulemaking . Learn more in the press release. |