The National Community Reinvestment Coalition (NCRC) submitted this week a detailed comment to the Consumer Financial Protection Bureau (CFPB) for its proposed rule on reporting and disseminating small business loan data required by Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
Section 1071 requires the CFPB to enhance publicly available small business data to include the race and gender of small businesses applying for credit. As users of small business loan data, NCRC and our members believe that data effectuates the purpose of Section 1071 by improving the efficiency and equity of lending markets. Data analysis identifies credit needs and gaps for different types of small businesses and therefore directs attention to further understanding and remedying these gaps.
The CFPB’s proposed rule will effectively facilitate community needs and fair lending analysis by requiring comprehensive and robust data.
However, as with any proposed rule, there are areas that could be improved, including the CFPB’s decision to refrain from collecting a small business applicant’s credit score and the disclosure of the Annual Percentage Rate of loans.
To read NCRC’s full comment, visit: https://ncrc.org/ncrc-comment-on-proposed-section-1071-small-business-lending-data-collection/
For more about Section 1071, visit: https://ncrc.org/section1071/