STATEMENT: CFPB Director Rohit Chopra Announces Final Section 1071 Rules At NCRC’s Just Economy Conference

In response to Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra’s announcement of the final rule implementing Section 1071 of the Dodd-Frank act on Thursday at the National Community Reinvestment Coalition’s (NCRC) Just Economy Conference, NCRC President and CEO Jesse Van Tol released the following statement:

“Director Chopra was able to push out this important and long-awaited final regulation on small-business lending data collection after barely a year in the job,” NCRC President and CEO Jesse Van Tol said. “I applaud Director Chopra and his staff for the hard work that went into delivering a rule Congress authorized nearly 13 years ago to eliminate blind spots around access to small business loans. It is just the latest reminder of how essential it is for the American people to have reliable information on how access to credit is still affected by race and gender.

“I look forward to diving into the details of the final rule with NCRC members and staff experts so that we can fully evaluate its content and aid in its implementation. We think it’s important that both the vast majority of loans and the vast majority of institutions get covered by the rule. Increased transparency around small business lending can boost lending to underserved smalI businesses in the same way that better mortgage data increased lending to Black and Latinx borrowers. And I am proud that Director Chopra chose to announce this much-anticipated news at our Just Economy Conference to a ballroom full of people who spend every day working to make their communities more prosperous and inclusive.

“Small businesses are essential to both the whole economy and to family and community success since most American businesses are small businesses and they employ nearly half of our workforce. Every politician likes to point to the value of small businesses, but as financial institutions have been allowed to elude transparency in their patterns of small business lending, such businesses owned by people of color and women have suffered from neglect and injustice. The implementation of this final rule will finally bring sunlight into small business lending and afford policymakers the data and knowledge they need to help  ensure that every American, regardless of race or gender, can pursue their dreams on a fair and level financial playing field.”