Impact of CFPB Rule on Small Business Loan Applications

The Biden administration's CFPB issued a rule under Section 1071 of the Dodd-Frank Act that requires banks to collect extensive data on small business loan applications, including sensitive information like race, sex, LGBTQ status, and pricing terms. Critics argue that this rule represents bureaucratic overreach and could harm small businesses, particularly minority- and women-owned firms. The rule has faced legal challenges and calls for repeal.

Consumer Financial Protection Bureau Protection

A federal judge blocked the Trump administration from dismantling the Consumer Financial Protection Bureau and ordered reinstatement of terminated employees. The CFPB was created by Congress to protect Americans' financial security.

Appointment of Scott Bessent as Acting Director of the Consumer Financial Protection Bureau

Scott Bessent, Treasury Secretary, has been named acting director of the Consumer Financial Protection Bureau, replacing Rohit Chopra. Bessent, a wealthy hedge fund manager, is expected to lead the bureau with a business-friendly approach, suspending much of the bureau's work in line with the goals of the Administration.