Tuesday, December 1, 2015

Small Business Data Collection on Bureau's Rulemaking Agenda

On the Consumer Financial Protection Bureau's regulatory agenda for the next year is the collection of information on financial institutions' lending to women-owned, minority-owned, and small businesses.

This data collection is mandated by the Section 1071 of Dodd-Frank Act.

According to the Dodd-Frank Act, the purpose of this data collection is to facilitate enforcement of fair lending laws and enable communities, governmental entities, and creditors to identify business and community development needs and opportunities of women-owned, minority- owned, and small businesses.

According to the Dodd-Frank Act, the following information will be collected by the Consumer Financial Protection Bureau (Bureau):

(A) the number of the application and the date on which the application was received;
(B) the type and purpose of the loan or other credit being applied for;
(C) the amount of the credit or credit limit applied for, and the amount of the credit transaction or the credit limit approved for such applicant;
(D) the type of action taken with respect to such application, and the date of such action;
(E) the census tract in which is located the principal place of business of the women-owned, minority-owned, or small business loan applicant;
(F) the gross annual revenue of the business in the last fiscal year of the women-owned, minority-owned, or small business loan applicant preceding the date of the application; ‘‘(G) the race, sex, and ethnicity of the principal owners of the business; and
(H) any additional data that the Bureau determines would aid in fulfilling the purposes of this section.

The Bureau indicated that its data collection efforts will build off a similar rule it finalized regarding the collection of home mortgage lending data.

This data collection mandate will impose a new regulatory burden on banks and credit unions.

Read the Bureau's Fall Rulemaking Agenda.

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