WASHINGTON, D.C. – A federal judge on Monday ruled in favor of the Consumer Financial Protection Bureau’s (CFPB) rule requiring lenders to collect demographic data on small business borrowers applying for loans.
Mitria Wilson-Spotser, vice president and federal policy director at the Center for Responsible Lending (CRL), made the following statement:
The court correctly held that the CFPB was well within its legal authority to issue the small business data rule. Once implemented, this sunshine provision will create transparency and help regulators, lenders and entrepreneurs better understand where business capital is lacking and whether the financial markets are truly serving all of our nation’s entrepreneurs. Given that small businesses are the backbone of our nation’s economy, there simply is no justification for the industry’s continuous attempts to block collection of this critical information.
Additional Background
- Groups Urge Congress Not to Obstruct Final Small Business Data Collection Rule
- The CFPB’s rule, finalized in March 2023, was adopted under Section 1071 of the 2010 Dodd-Frank Act. Section 1071 was designed to help government agencies, as well as state and local governments, to monitor the small business lending market and ensure that lenders do not violate anti-discrimination laws. The rule also enables regulators and lenders to update existing lending programs to better meet the credit needs of historically underserved businesses.
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Press Contact: Vincenza Previte vincenza.previte@responsiblelending.org