(Oct. 8, 2021) A summary of a proposal by the CFPB to collect business loan data from lenders has been published and posted by NASCUS. Comments on the proposal are due on or before Jan. 6.
The summary is available to members only.
The proposal was issued early last month (Sept. 1) and is aimed, according to the bureau, at “helping regulators and the public better understand the business lending market.”
The proposal would require lenders to disclose information about their lending to small businesses. According to the bureau, lenders would be required to report the amount and type of small business credit applied for and extended, demographic information about small business credit applicants, and key elements of the price of the credit offered.
That information would allow it to learn, the agency said, how small enterprises fare when trying to access financing, and what barriers are holding them back from further prosperity.
CFPB noted the rule was mandated by the legislation which created the bureau, the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank).
In comments to the press Sept. 1, CFPB then-Acting Director Dave Uejio said the bureau and the public don’t know enough about whether small businesses have fair access to the capital they need to generate new jobs and grow the economy.