The American Bankers Association and 52 state bankers associations said that they support most of the proposed revisions to the Consumer Financial Protection Bureau’s small-business lending data rule to scale back the scope of data collection.
The CFPB released a final rule in 2023 to implement Section 1071 of the Dodd-Frank Act, which requires financial institutions to report data on small-business lending. Several lawsuits followed, including one brought by the Texas Bankers Association and American Bankers Association. In response, the CFPB last month released a revised rule that scales back its scope to “more modest requirements” focused on core lending products, lenders and data.
In a joint letter, the associations said they agree with the narrower focus, and that the bureau should maintain that focus unless there is compelling evidence that the rule needs to be expanded, with due consideration of the costs to small businesses. They also approved of the revised Jan. 1, 2028, compliance date, although they asked for more flexibility for the years that lenders may use to determine if their loan volume meets the rule’s 1,000-loan threshold, given the new date.
