On September 15, 2020, the Consumer Financial Protection Bureau (CFPB) announced the release of an Outline of Proposals Under Consideration and Alternatives Considered for Section 1071 of the Dodd-Frank Act governing small business lending data collection and reporting. The Bureau will convene a Small Business Advocacy Review panel in October 2020. The panel will prepare a report that examines the impact of the potential rule on small businesses.
Section 1071 requires financial institutions to collect certain data regarding applications for credit for women-owned, minority-owned, and small businesses, and to report that data to the Bureau on an annual basis. The new regulations will be part of CFPB Regulation B.
The requirement comes from the Dodd-Frank Act and originally was required to be completed by July 21, 2011. This is now one of the most delayed regulatory requirements in the history of bank regulation.
High-Level Summary