Overturning CFPB Rule Weakens Fair Lending Law for Underrepresented Small Businesses
Statement by John Arensmeyer, Founder & CEO of Small Business Majority, urging President Biden to veto Senate bill that overturns Consumer Financial Protection Bureau’s ability to increase transparency in small business lending
“The U.S. Senate’s action on legislation overturning the Consumer Financial Protection Bureau’s (CFPB) Section 1071 rule requiring lenders to report demographic data on small business loan recipients is a regrettable setback for entrepreneurs.
The CFPB’s rule implementing Section 1071 of the Dodd-Frank Act would facilitate better tracking of lending in communities of color and identify business development opportunities for entrepreneurs who have traditionally experienced inequities in our banking system.
Enacted 13 years ago, the Dodd-Frank Act is an important law that provides common-sense financial protections for entrepreneurs and consumers. The recent implementation of Section 1071 will create transparency around lending data that is crucial to informing decision-making and leveling the playing field for small business borrowers.
If the U.S. House of Representatives similarly passes this legislation, we urge President Biden to veto this bill as soon as it reaches his desk, advancing improvements to lending that will reach the needs of underserved entrepreneurs.”
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About Small Business Majority
Small Business Majority is a national small business organization that empowers America's diverse entrepreneurs to build a thriving and equitable economy. We engage our network of more than 85,000 small businesses and 1,500 business and community organizations to advocate for public policy solutions and deliver resources to entrepreneurs that promote equitable small business growth. Our deep connections with the small business community along with our scientific research enable us to educate the public about key issues impacting America’s entrepreneurs, with a special focus on advancing the smallest businesses and those facing systemic inequalities. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.