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.