Impact of CFPB Rule on Small Business Loan Applications

SOURCE www.breitbart.com
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.

Key Points

  • CFPB rule under Section 1071 of Dodd-Frank Act requires extensive data collection on small business loan applications
  • Critics argue the rule could harm small businesses and is driven by DEI ideology
  • Small community banks could be hardest hit by the rule
  • Rule facing legal challenges and calls for repeal

Cons

  • Could harm small businesses, especially minority- and women-owned firms
  • Represents bureaucratic overreach
  • Data collected may have limited value