Booker and Senate Democrats Call for Targeted Data Requirements to Increase Small Business Lending

WASHINGTON — U.S. Sen. Cory Booker (D-NJ) today led a letter urging the Consumer Financial Protection Bureau (CFPB) to expedite the agency’s rulemaking (Regulation B) around publicly available small business loan data, pursuant to Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
A lack of public data makes it difficult for lenders to identify and control the levers available to increase lending across all communities. Section 1071 of the Dodd-Frank Act requires the CFPB to collect and make public data on small business lending. By improving the data that is publicly available, the rule could facilitate enforcement of fair lending laws and could improve access to credit for women-owned, minority-owned, and all small businesses.
“There are nearly 28 million small businesses in the United States. While entrepreneurship can open the door to achieve the American Dream, it can be difficult for entrepreneurs to get their businesses started. Access to capital is often limited in underserved and underrepresented communities—the same communities that disproportionately endure financial hardship and lack broader access to opportunities….Current data collection efforts are fragmentary and provide an incomplete picture of lending in the small business marketplace. Regulation B will facilitate the enforcement of fair lending laws and help identify the credit needs of women-owned, minority-owned, and all small businesses,” the senators wrote.