A CFPB proposal to require the collection of small business lending data pursuant to Dodd-Frank Section 1071 ("Small business data collection") was published in the Federal Register. Comments on the proposal must be received by January 6, 2022.
As previously covered, the proposal would add a new Subpart B ("Small Business Lending Data Collection") under Regulation B ("Equal Credit Opportunity Act"). If adopted, the requirements would apply to any entity engaged in financial activity that has "originated" 25 or more credit transactions to small businesses, as defined under the Small Business Act, in the two calendar years preceding the effective date of the rule.
Under the proposed requirements, the following data on small business applications would have to be collected and reported:
- the type of credit requested by the application, and the nature and revenue of the applicant's business; and
- the applicant's demographics, including (i) minority- or women-owned business status and (ii) ethnicity, race and sex.
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