Earlier this month the CFPB released its outline of Proposals under Consideration and Alternatives Considered for Section 1071 of the Dodd-Frank Act governing small business lending collection and reporting. Per Section 1071, financial institutions are required to collect and report data regarding credit applications submitted by small businesses, as well as women and black-owned businesses to the Bureau.
The outline released by the Bureau proposes potential new rules such as what entities would be considered covered applicants under Section 1071, refining the definition of “application” for the purposes of data collection, and what information falls under mandatory versus discretionary data points to be reported. Along with a description of proposals to be considered, the Bureau’s outline discusses relevant law and the potential economic impact these proposals could have for the small businesses at the center of Section 1071.
The Bureau will convene a panel in October 2020 to consult small business entities on the impact of these proposals prior to issuing a notice of proposed rulemaking. Any feedback on the Bureau’s proposals should be submitted to 2020-SBREFAfirstname.lastname@example.org by December 15, 2020.