Payne, Jr. and Van Hollen Lead 82 Dems in Urging Data Transparency to Increase Small Business Lending
Washington, D.C. – Today, Congressmen Donald M. Payne, Jr. (NJ-10) and Chris Van Hollen (MD-8) led a letter to Consumer Financial Protection Bureau (CFPB) Director Richard Cordray urging him to expedite Regulation B rulemaking around small business lending data, in accordance with Dodd-Frank reform, to facilitate the enforcement of fair lending laws and improve access to capital for small businesses. They were joined on the letter by 82 of their colleagues.
“Analyzing access to credit and removing barriers to small business creation becomes imperative when considering the significant role of small business on job creation; small business lending has plummeted since the Great Recession,” the members wrote. “Transparency in small business lending data is the key to understanding the credit needs of women-owned and minority-owned small businesses. Public and private entities are collecting data on various aspects of small business lending. However, these groups offer a fragmentary and incomplete picture of lending in the small business marketplace. Regulation B is essential for facilitating the enforcement of fair lending laws.”
Regulation B will build the framework to implement Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Under Section 1071, the CFPB is required to centralize the data on small business lending. This data is critical to lending institutions because it will help them gain a broader understanding of the credit needs of small businesses. In addition, small business lending data is extremely important to assisting women-owned and minority-owned small businesses, which often have limited access to capital.