CFPB Issues Proposal to Collect Small Business Data; League Seeks Member Feedback

The Consumer Financial Protection Bureau (CFPB) today proposed a new rule designed to help small businesses gain access to the credit they need and deserve by increasing transparency in the lending marketplace.

This rule, mandated by Congress in the Dodd-Frank Act, would, if finalized, require lenders to disclose information about their lending to small businesses, allowing community organizations, researchers, lenders and others to better support small business and community development needs.

Under the proposal, 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.

The CFPB today also launched a web portal for small business entrepreneurs to share their stories about applying for credit, which will help the CFPB understand small business entrepreneurs’ challenges and successes in accessing credit.

“We support the CFPB fulfilling its statutory mandate with the least burden to credit unions," notes Virginia Credit Union League President/CEO Carrie Hunt. "Credit unions have a strong history of small business lending and have demonstrated that with existing reporting and data. We look forward to continuing to grow our small business lending without burdensome requirements and will provide feedback to the CFPB."

Your unique perspective and experience will prove helpful once we identify and review potential issues within the rule. Please email us your thoughts at pr@vacul.org.

Resources From the CFPB

• Read a summary of the proposed rule.
• Read today’s proposed rule.
• Visit our Small Business landing page to explore the CFPB’s work on behalf of small businesses or to submit a story via the new portal.
• View our video.
• Download an MP4 file of our video.
• View additional materials related to the CFPB’s section 1071 rulemaking.