CAPAC Chair Statement on CFPB Finalizing Rule on Small Business Lending Data

WASHINGTON, D.C. – Recently, the Consumer Financial Protection Bureau (CFPB) finalized a rule to implement small business lending data collection requirements as set forth in section 1071 of the Dodd-Frank Act. This rule specifically includes the collection of demographic data, including on race and ethnicity of applicants.

Congressional Asian Pacific American Caucus (CAPAC) Chair Rep. Judy Chu (CA-28) issued the following statement:

“Improving the collecting and reporting of disaggregated data for Asian American, Native Hawaiian, and Pacific Islanders (AANHPIs) is critical to ensure that the unique needs of our diverse communities are being properly met. This is exceptionally true when it comes to understanding access to credit for small business entrepreneurs, especially those identifying as AANHPI and other minority groups.

“During the COVID-19 pandemic, small businesses struggled to access credit under the Paycheck Protection Program. With this new rule, covered financial institutions will be required to collect and report on information about the small business credit applications they receive—including aggregate and disaggregated data on race and ethnicity—which will increase transparency in small business lending, combat potential discrimination, address the efficacy of federal programs in properly serving our communities, and promote economic growth.

“When CAPAC Members met with CFPB Director Rohit Chopra last year, we discussed the need for such data to be not just collected and reported, but also disaggregated, and for the final rulemaking to be completed. I am thrilled to see that this rule has been finalized and I applaud the CFPB for taking this important step towards data equity for our communities. ”