CFPB’s Small-Business Lending Data Collection Rule Draws Community Bank Criticism

September 16, 2020 at 3:45 pm ET

The way in which many small banks could be required to report small-business loan data on minority- and women-owned businesses is emerging as a contentious issue for the Consumer Financial Protection Bureau, which on Tuesday unveiled its long-awaited outline of how it plans to implement a key part of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

The CFPB has for years delayed a rulemaking on part of Dodd-Frank that requires collecting data on small-business lending to determine if minority- and women-owned small businesses are equally able to access funding, similar to how banks and mortgage lenders report data under the Home Mortgage Disclosure Act.

Consumer advocates have pushed the CFPB to collect this data and implement the rule, an issue they say is increasingly important as questions linger over the fairness of the Paycheck Protection Program and other small-business relief efforts

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