Consumer advocates are praising the Consumer Financial Protection Bureau’s proposed rule that would require financial institutions, including credit unions, to report demographic information about their small business lending.
Lenders that made at least 25 credit transactions in each of the past two years would be required to report demographic information about their small business credit applicants, under the rule.
“Publicly accessible data on small business lending can motivate lenders to increase their lending to women-owned and minority-owned small businesses,” the National Community Reinvestment Coalition said.
Senate Banking Committee Chairman Sen. Sherrod Brown, D-Ohio, praised the CFPB’s proposal. “This proposed rule is an important step in addressing longstanding gaps in small business lending data – gaps that have hampered our understanding of small business lending and made it difficult to assess whether loans are distributed fairly and equitably to women- and minority-owned small businesses,” Brown said.
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