WASHINGTON– The Consumer Financial Protection Bureau (Bureau) released its Outline of Proposals Under Consideration and Alternatives Considered for Section 1071 of the Dodd-Frank Act governing small business lending data collection and reporting.
The Bureau said it will convene a Small Business Advocacy Review panel in October 2020. The panel will prepare a report that examines the impact of the potential rule on small businesses. The report, along with feedback received from small businesses, will be considered by the Bureau in its rulemaking to implement Section 1071.
Section 1071 requires financial institutions to collect certain data regarding applications for credit for women-owned, minority-owned, and small businesses, and to report that data to the Bureau on an annual basis. The Outline describes proposals that the Bureau is 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, the Bureau said.
The Bureau, along with the Office of Information and Regulatory Affairs in the Office of Management and Budget and the U.S. Small Business Administration’s Office of Advocacy, are directed by the Small Business Regulatory Enforcement Fairness Act to form a panel. The Bureau is convening the panel in order to consult small entities regarding the potential impact of the proposals under consideration, in advance of the Bureau issuing a notice of proposed rulemaking.
To read the Outline click here.