Delaying CFPB Rule Weakens Fair Lending Protection for Small Businesses

“The Consumer Financial Protection Bureau’s (CFPB) decision to delay implementation of the Section 1071 rule harms small business lending markets. With less data available to show which businesses receive financing and which do not, policymakers cannot address any gaps or shortfalls in the small business lending ecosystem.

Section 1071 of the Dodd-Frank Act requires lenders to report demographic data on small business loan recipients in order to facilitate better tracking of lending in under-resourced communities and to identify business development opportunities for entrepreneurs who have traditionally experienced inequities in our banking system. Delaying the implementation of this rule only hampers efforts to promote much-needed transparency and accountability in small business lending.  

Small Business Majority’s research found that among small businesses that sought financing in 2024 and 2025, just 36% received funds. Of that 36%, nearly one-quarter said the funding they received was insufficient to meet their needs. Policymakers should be doing everything they can to advance improvements in the lending space that will offer greater support to under-resourced entrepreneurs. Further delaying the implementation of Section 1071, however, will only exacerbate existing inequities. If CFPB refuses to eventually implement this important rule, we urge Congress to come up with another solution to require lenders to report demographic data on small business loans.”